Fiscal terms for Contract of Work (KK), Coal Mining Concession Work Agreement (PKP2B), and Mining Business Permits (IUP) has different arrangement, hence the calculation of state revenue from these contracts and permit will also be different. Therefore, it is important to understand the fiscal term in the minerals and coal sectors. The discussion on PWYP Knowledge Forum (PKF) (1/3) ago, invited Johnson Pakpahan as Director of Mineral and Coal Revenue of Directorate General of Mineral and Coal, whereas the PKF discussion was also parts of the Financial Modeling sprint aiming to build financial model for oil and mining projects in Indonesia and Philippines.
“Non-tax revenue (PNBP) in the mining sector consists of land rent and royalty, which shall be applicable to IUP, KK and PKP2B. As for PKP2B, also apply Sales of Mining (PHT), “said Johnson Pakpahan. He added that the land rent fee for IUP is calculated based on the mining area multiplied by the tariff as it is regulated in Government Regulation 9/2012 on types and tariffs of non-tax revenues in the Ministry of Energy and Mineral Resources, whereas 2 USD for the tariff exploration IUP, and 4 USD for IUP Production Operation. While the land rent for KK and PKP2B, the mining area shall be multiplied by tariffs that were arranged in the contract (with a range of USD 0.08 to USD 4.00 according to the stage of operation).
In response to this matter, Asri Nuraeni from Publish What You Pay (PWYP) Indonesia, also the participant of financial modeling sprint raised a question related to the applicable tariff of non-tax revenue for one of the KK project to be modeled. “The secrecy of contract has hindered public participation to monitor the industry. It is difficult to learn the tariff of non-tax revenue, then how public can assess the fairness of the revenue. Therefore, it is particularly important for Indonesia to disclose contract, both for KK and PKP2B. It is not something new, it has been a global practice,” said Asri.
Asides from the presentation of PNBP calculations, Johnson also informed that currently, the Directorate General of Mineral and Coal Revenue is developing an E-PNBP system. “We are currently incorporating all elements of commodity types into the E-PNBP system. Although there are some minor challenges in the making of this system, which is the different calculations for PKP2B since it has various generations that impact on calculations.
“The arrangement of E-PNBP must follow the production stages and each generation (for PKP2B and KK). Not only that, in the calculation of land rent also need to adjust to the stages of mining business activities. All calculations of this payment will be verified by the examining authority, “explained Johnson.
Moreover, all data and information technology systems on ESDM will be controlled by ESDM’s Data and Information Technology Center (Pusdatin). Pusdatin also set up a task force to perform data security testing. The e-PNBP shall be integrated with Online Non-Tax Revenue Information Systems (SIMPONI) managed by the Ministry of Finance.