JAKARTA. The government is considered to need a lot of improvements in exploitation in the extractive industry sector. The reason is that until now the mining sector and oil and gas (oil and gas) are still the mainstays in state revenues both from tax and non-tax (PNBP).
Maryati Abdullah, National Coordinator of Publish What You Pay Indonesia, said that the main homework in the mining and oil and gas sectors is mainly in terms of licensing, law enforcement, and regulation.
For example, up to now, there are around 4,600 mining business permits (IUP) that have not been regulated by administration and 85 companies contract of work (CoW) and coal mining concessions (PKP2B) that have not amended their contracts.
In addition, the coordination of the government and law enforcement officers in the actions of mining companies that ignore environmental issues has not gone well. Finally, victims were found floating in the pit of a former quarry in East Kalimantan on 30 December.
“Events continue to recur, showing the chaotic management of mining and post-mining in Indonesia,” said Maryati, last weekend.
Until now, the process of revising the Oil and Gas Law has also been stalled. In fact, four years ago it was included in the national legislation program (Prolegnas) in the DPR. According to Maryati, an important revision of the Act was completed to provide legal certainty in the upstream oil and gas industry after the decision of the Constitutional Court (MK) which dissolved BP Migas, as well as to close the gap for oil and gas mafia practices.
Indonesia’s Extractive Industries Transparency Initiative (EITI) also notes that there are still 10 oil and gas companies and 21 mining companies that are not concerned with taxation reporting.
The coalition government and community elements under the Coordinating Ministry for the Economy also noted a number of findings that had been recommended to the government.
Among other things, differences in the results of reconciliation of oil and gas agency tax revenues in 2012 and 2013, each valued at the US $ 129.4 million and the US $ 14.1 million. As well as mining company corporation tax of Rp. 290.1 billion in 2012 and Rp.53.4 billion in 2013.