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Jakarta Post

'Energy and mineral sector hotbed of illegal levies'

News Desk (The Jakarta Post)
Jakarta
Fri, October 21, 2016

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'Energy and mineral sector hotbed of illegal levies' Trucks carrying heavy equipment pass through the site of a coal mining field in East Kalimantan on Aug. 19. (Antara/Wahyu Putro A)

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nergy and mineral resources sector is vulnerable to illegal levies, as people often deal with red tape when applying for numerous permits, experts said on Friday.

The process of applying for mineral and coal mining permits, product mining licenses and other types of permits usually have vague time frames, Fabby Tumiwa, the executive director from the Institute for Essential Services Reform (IESR) said.

“Basically, this sector is prone to illegal levies because a huge effort is needed to obtain certain permits. The permits usually have high economic value,” he explained.

As people face hurdles to obtain permits, they may find shortcuts by bribing state apparatuses, he said.

Maryati Abdullah, the coordinator for civil society organization Publish What You Pay Indonesia, said that the government has to create transparent procedures to combat illegal levies.

“The government should provide an online system to minimize interaction between its officials and customers. Service standard processing times should also be published online,” she said.

On Friday, Coordinating Political, Legal and Security Affairs Minister Wiranto announced that President Joko “Jokowi” Widodo has signed presidential regulation No. 87 on Tim Saber Pungli (Eradication of Illegal Fees Team), as stated by Kompas.

The action shows the government’s seriousness in combating illegal levies that have been rampant long before the President took office in 2014. (win/bbn)

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