The parent company of the coal companies within the Bakrie Group, PT Bumi Resources (Bumi), has announced that it has paid the arrears of tax claimed from it by Indonesia’s Directorate General of Taxation (DGT), as well as that claimed from its two subsidiaries, PT Kaltim Prima Coal and PT Arutmin Indonesia.
The overall amount claimed by the DGT from the three companies totalled some IDR2.1 trillion (USD227m) for the tax periods from 2005 to 2007. The group has said the misunderstanding was due to longstanding differences between it and the tax authorities over its tax status.
The Bakrie Group has said that its companies have the status of first-generation Coal Contract of Work companies, in which the ruling income tax and royalty rates are fixed for the duration of the relevant contract.
While Bumi paid the tax claim last month, it still wants to discuss its tax status with the DGT. It hopes to be able to recover that payment in the future, or utilize it against future Indonesian tax obligations. For its part, the DGT has insisted that the investigation must continue, once it has begun.
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