Jakarta, Kompas: The governance of the mining sector still leaves several problems. On the one hand, the quality of structuring by the government is getting better. This year, the government has suspended 2,500 mining license because they do not meet the compliance element in a report entitled “Coordination and Supervision of Mineral and Coal Mining” published by Publish What You Pay (PWYP) Indonesia, Thursday (7/12), in Jakarta, it was revealed that there is mining license (IUP) in a conservation area of ​​6.3 million hectares.

Also, there is an overlap between contract concessions (contracts of work / KK) and mining permits. From PWYP Indonesia’s records, 121 licenses overlap with KK and 50 IUPs that overlap with Coal Contract of Work (PKP2B). “Based on the results of coordination and joint supervision of the Corruption Eradication Commission (KPK), it was found that there was 6,297 mining license, out of 10,584 licenses, which had a taxpayer identification number (NPWP). The rest were not identified.

Of those who have Taxpayers Identification Number, only 5,557 licenses report the tax return (SPT),” said the Manager of Advocacy and Networks of PWYP Indonesia Aryanto Nugroho in his presentation. Aryanto said the potential tax from the mineral and coal mining sector that does not carry out its obligations reaches Rp 6 trillion per year. This potential is lost because Mining License holders already in production do not pay taxes to the government. Besides, it is strongly suspected that the reported income tax is far less than its real value.

It is a Tough Process

The Chairman of the Corruption Prevention Team for Natural Resources of the KPK, Dian Patria, said that structuring the mining sector cannot be done quickly. According to him, the KPK cannot work alone. It needs strong commitment and full support from other agencies, such as the Ministry of Energy and Mineral Resources (ESDM), the Ministry of Environment and Forestry, including local governments. Secretary of the Directorate General of Mineral and Coal at the Ministry of Energy and Mineral Resources, Heri Nurzaman, admitted that the mining sector’s governance had not been fully implemented.

However, there have been several advances, such as the addition of IUP with a clear and clean status (CNC), Contract of Work, and PKP2B holders who are willing to amend contracts or simplify mining sector permits. “Of the 33 Contract of Work, there are 21 contracts that have been amended, two have turned into Special Mining License, and ten contracts are not yet amended. As for the 68 Coal Contract of Work, the remaining 18 agreements are not yet willing to be amended. Our target is that all Contract of Work and PKP2B holders who are not yet willing to amend the contract can be completed this month. Likewise, mining licenses have not yet had CNC status,” said Heri.

The National Coordinator of PWYP Indonesia, Maryati Abdullah, recommended building understanding among stakeholders in the mining sector in structuring the mining sector. Besides, transparency must be accompanied by the principle of accountability that benefits the community, especially around the mine site. Regarding mining licenses that do not have CNC status, the government has blocked 2,509 licenses by not providing customs or port services.