Not only that, but many mining companies also owe it to the state. The value reaches the US $ 1.8 million or around Rp 23 trillion.

The Corruption Eradication Commission (KPK) continues to encourage transparency of ownership in the mining sector. Many mining companies have unclear beneficial ownership (BO).

KPK Deputy Chairman Laode M. Syarif said based on studies from his institution and the Directorate General of Mineral and Coal. There are still 4,276 mining licenses (IUP) holders who are not yet clear and clean. Whereas until now, the number of companies holding mining licenses could reach 10,432.

According to Waode, several mining license holders have entered a conservation area with an area of ​​1.3 million hectares. There are also those included in protected forest areas, which cover 4.93 million hectares.

Besides, 1,850 mining license holders do not have a Taxpayer Identification Number (NPWP). Even 90% of license holders do not pay rehabilitation and post-mining funds.

Not only that, but many mining companies also owe it to the state. The value reaches the US $ 1.8 million or around Rp 23 trillion. “We do not know the real owner of this company,” said Laode at the beneficial ownership transparency conference in Jakarta, Monday (23/10).

To that end, the KPK reminded the importance of transparency in the mining sector, especially regarding ownership. Moreover, according to EY’s 14th Global Fraud Survey 2016, 91% of business leaders believe Beneficial Ownership is essential to determine the business going forward. Even three rating agencies, namely Standard & Poor’s, Moody’s, and Fitch, use transparency as a reference in assigning debt ratings.

However, to increase transparency in Indonesia, there are still several obstacles. One of them is support from political parties or parliament.

In the future, Laode hopes that there will be no more conflicts of interest regarding ownership transparency. All elements, including the Ministry of Finance and the Ministry of Energy and Mineral Resources, and other ministries and institutions, must also work together to eradicate corruption with the Corruption Eradication Commission (KPK). “So that we apply for this beneficial ownership properly,” he said.