JAKARTA – The Government of Indonesia c.q the Ministry of Energy and Mineral Resources (EMR) reaffirmed the seriousness to support a transparency for investors who will invest in the EMR sector. The Beneficial Ownership (BO)’s transparency is expected to prevent the corruption, tax evasion, terrorism financing, and money laundering.

In response, the Ministry of EMR has issued Regulation of Ministry of EMR Number 48 Year 2017 Regarding Business Supervision in the Energy and Mineral Resources sector. “We have issued the Ministerial Regulation No. 48 Year 2017 and have been running for about 6 months. I issued the Ministerial Regulation N. 48 Year 2017 on the request for ownership approval, the board of directors must issue BO We do not accept the BO is not clear,” said Minister Jonan while attending the Conference Opening Up Ownership in Jakarta, Monday (23/10).

Those regulations are completed the Act (UU) Number 4 Year 2009 on Mineral and Coal Mining and Government Regulation Number 35 Year 2004 on Upstream Oil and Earth Business Activities. The last two regulations have not yet set out explicitly regarding the openness of ownership and licensing of extractive industry businesses.

Minister of EMR expected through Regulation of Ministry of EMR Number 48 of 2017 able to realize a good governance in EMR sector through business supervision. This effort is a constitutional mandate of the 1945 Constitution Article 33 where the EMR sector which controls the livelihood of the people is controlled by the state and utilized for the welfare of the people as much as possible.

Ministry of EMR as a Pioneer
A Commissioner of the Corruption Eradication Commission (KPK), Laode M Syarif, explained that the strategic programs and sources of state revenues are the focus of the BO implementation like mining sector. “The KPK is working with the EMR, one of them is an inventory of Mining Business Permit (IUP) which not clear and clean, the amount is quite large approximately 4,000 IUP,” said Laode. Even, the KPK hopes that ministries and other state institutions can follow in the footsteps of the Ministry of EMR which has issued its legal standing.

In addition, the Minister of EMR also stressed that an interagency cooperation is the benchmark for successful implementation of the BO. Currently, the Ministry of Finance and the KPK have gone through it. “To do the BO clearance, one of them must enter the tax ID in an administrative document. So, all the data is connected,” continued Minister Jonan.

Non-disclosure of BO information may cause loss of economic potentials and state revenues, one of them is a tax avoidance by taxpayers. It is confirmed by the Expert Staff of Tax Compliance, Suryo Utomo. “By the BO, it is very important. At least, (it) minimize the tax avoidance and it is implemented to all sectors not only mining,” said Suryo.

The government is currently preparing the Presidential Regulation (Perpres) as the legal standing of BO implementation because its implementation will increase the level of a country’s investment. “Now, we are preparing this Presidential Regulation. There is no sanction who doesn’t conduct the BO for this time. By this Perpres, we have the foundation and database so that the scheme BO can be implemented,” concluded the Deputy II of the Presidential Chief of Staff at the Office of Presidential Staff, Yanuar Nugroho.(NA)

Source: esdm.go.id