OECD report showed that globally, extractive industries ranked first as the most corrupt industries. One of them was mining sector. This finding may apply in Indonesia as well, proven by state officials, politician, bureaucrat that have been involved in corruption, especially in the mining sector. The indication of corruption also proven by the findings of Coordination and Supervision on Mining Sector held by Corruption Eradication Commission this year, especially in mining permits as the status is non-CnC, the concessioner don’t have tax identification number, the location of permit is in the conservation and protection forest, and also fake concessioner.
Anti-Mining Mafia Coalition consisting more than 60 civil society organizations all over Indonesia, which PWYP Indonesia is among the initiators, conducted study about potential lost on mining revenue, especially from land rent in 13 provinces within 2010-2013. Those 13 provinces covered Aceh, South Sumatera, Riau Island, Bangka Belitung Island, Jambi, West Borneo, Central Borneo, South Borneo, East Borneo, South Celebes, Central Celebes, Southeast Celebes and North Maluku. Other than Aceh, the provinces that mentioned above were pilot area of Coordination and Supervision on Mining Sector.
From the study, it’s indicated that the potential lost in those 13 provinces reached Rp 4 trillion, including Rp 0.9 trillion from land rent and Rp 3.1 trillion from royalty. Moreover, only 50% of Mining Permits holder didn’t have Tax Identification Number (NPWP). Thus, 50% of mining companies didn’t pay tax.
Maryati Abdullah, as National Coordinator of PWYP Indonesia and also the representative of Anti-Mining Mafia Coalition, demanded the officials, especially Corruption Eradication Commission, to combat corruption in mining sector. The Coalition also asked the government to manage revenue obtained from land rent and royalty in the transparent and accountable mechanism. “We also demand Jokowi to do #BlusukanTambang (impromptu visit on mining sites) in order to improve licensing mechanism and also strengthen law enforcement in mining sector,” emphasized Maryati.