PWYP Indonesia would like to express our gratitude to the Ministry of Energy and Mineral Resources (MEMR) for their commitment to increasing non-tax state revenue from the mineral and coal industries. We fully endorse the decision to introduce a new directorate specialising in the administration of non-tax revenue.

Minerals and Coal Director-General Bambang Gatot Ariyono has been persistent in bringing the issue of unpaid non-tax revenue, such as royalties and fees, by mining companies to the attention of the Central Government.
Last month it was decided that the budget target from non-tax revenue in the oil, gas and coal sectors would be reduced. The decision was based on a slump in prices and demand of these commodities.

Bambang also blamed mining company debts, unpaid fees and unpaid royalties for the reduced target, which has been lowered to IRP 30.1 trillion from the initial target of IRP 40.8 trillion. In May, the total unpaid amounts by businesses across the nation amounted to IRP 25 trillion, and included mining operators in the provinces.

Collecting revue in the provinces is particularly difficult because the MEMR lacks their own means of enforcement.
A new directorate has been formed to deal with the difficulty and obstacles in collecting non-tax revenue. The new director, to be selected soon, will specialise in the timely collection and handling of non-tax revenue.

We believe that this is a step in the right direction of improving mining governance and increasing the accountability for mining companies in Indonesia. [CB]