Indonesia has raised concerns about suspected coal deals struck between overseas buyers and its unregistered domestic miners.
A top official of the Indonesian embassy in New Delhi today said efforts were underway to ensure that all royalties and outstanding taxes were settled. This will pave the way for miners to secure legitimate licences to conduct business.
Indonesia is on course to become the seventh-largest economy by 2020 and has earmarked India as one of its focus countries for trade and investment.
Bilateral trade stood at $16.99 billion in 2013. A target has been set to reach the $250-billion mark by 2015.
“We want real users of coal to come and invest. We are now requesting coal miners to get the licence. To get this, they will have to settle their royalty and tax.
Many miners in Indonesia have not paid tax. There is an increase in domestic consumption in Indonesia. But this does not necessarily mean one cannot import coal from Indonesia. There are some new regulations to be applied by the government for all coal mines to fulfil their obligation on tax and royalty,” said Tito Dos Santos Baptista, vice-ambassador of the Indonesian embassy in Delhi. He was speaking at a session on business opportunities in Indonesia organised by the Indian Chamber of Commerce here today.
Primary items imported from Indonesia comprise coal, palm oil and copper ore, while exports include light oil, corn and peanuts.
Indonesia has approved a new trade law in February to regulate its trade activities.
Source: http://www.telegraphindia.com/1140906/jsp/business/story_18806800.jsp#.VA08DVT-IRo