The natural resources sector continues to be a pillar of both the central and regional economies and governmnet revenues. Natural resources from the mining sector are the second largest non-oil and gas export after the processing industry. In 2019, the mining sector by itself produced a total of 698,097 million tons , approximately 519.6 million tons or 74 percent of which was exported, and in 2020, a total of 438.9 million tons of mining products were exported. One direct contribution of mining natural resources is the income received by the state, both at the national level and in regions where mining sites are located. The average growth in non-tax state revenue from minerals and coal over the 2016-2020 period was 9.85%.
Natural resource revenues from mineral and coal mining consist of tax revenue and non-tax revenue (PNBP). The state revenue is recorded in the State Budget (APBN) and Regional Budgets (APBD), which are determined by the executive government (President and Regional Heads) in collaboration with the appropriate legislative bodies (the People’s Representative Council/DPR at both the national and regional level). The state and regional budgets are planned, determined, and implemented, and their performance evaluated annually. The state and regional budgets also contribute to regional-level income through the Village Fund Budget (Anggaran Dana Desa/ADD).
The fact sheets are designed as a resource for public and community education to encourage policy dialouge and the development of social accountability-particularly in regard to state revenue obtained from the mining sector. The first series of fact sheets focuses on illustrating the data and providing a portrait of state revenue (tax and non-tax) obtained from the mining sector, from the national to the provincial and district levels, in 3 (three) regions (Aceh, East Kalimantan, and Southeast Sulawesi) included in the pilot program conducted by PWYP Indonesia in collaboration with program partners. The fact sheets are a joint initiative between PWYP Indonesia and FITRA (the Indonesian Forum on Budget Transparency) in the form of a Mining Sector Social Accountability Program supported by the World Bank’s Global Partnership for Social Accountability (GPSA).
