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Jakarta Post

Government to revoke permits of delinquent miners

  • Grace D. Amianti

    The Jakarta Post

Jakarta   /   Wed, March 8, 2017   /  12:28 pm
Government to revoke permits of delinquent miners Heavy equipment and trucks pass through the site of a coal mining field in Kalimantan. (Antara/Wahyu Putro A)

The government warns that it will revoke operating permits of mining and coal companies with arrears in non-tax revenue (PNBP) payment as the amount remains large.

The Energy and Mineral Resources Ministry is ready to report the disobedient firms to the Corruption Eradication Commission (KPK), which coordinates with the ministry to supervise companies with mining licenses that have problems of arrears to the state.

The companies with such problems can be regarded as default, which will lead to revocation of permit, as reported by on Wednesday.

“Financial problems become one of the government’s focuses in mining permit management. Every year, there are lots of companies with non-tax arrears,” said the ministry’s mineral and coal director general Bambang Gatot Ariyono.

(Read also: Indonesia to challenge tax avoidance among beef importers)

Companies operating in the subsector mineral and coal mining remain to have non-tax revenue arrears worth a total Rp 5.07 trillion (US$380.2 million) as of February, a decrease from Rp 6.65 trillion seen in Dec. 31 last year, according to the government’s data.

The total amount is a combination of new and old arrears. The government expects that it can resolve the old arrears this month that spanned until Dec. 31, 2015.

Of the total amount as of February, companies with mining licenses (IUP) have the most non-tax arrears with Rp 3.95 trillion, while firms holding coal contracts-of-work (PKP2B) and mineral contracts-of-work (KK) have Rp 1.1 trillion and Rp 20.64 billion in their non-tax arrears, respectively, the data shows. (bbn)

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