Indonesia Seeks Tax Revenue from Individual Miners

TEMPO.CO, Jakarta - The Indonesian government is asked to broaden its focus in tax revenues from the mining sector. Instead of just aiming for revenues from large miners, the government should also mine individual mining enterprises.

According to the Tax Directorate General, tax revenues from the mining and quarrying businesses as of August 8, 2014 reached Rp36.4 trillion. The amount is 11.8 percent lower compared to the same period last year. In 2013, the mining tax collection fell 12.06 percent to Rp41.3 trillion compared to 2012.

Darussalam, tax observer from the University of Indonesia, said that declining tax revenues from the mining sector is caused by a dropping demand from importing countries, which caused production values to stagnate.

Indonesian Gold Mines Association chief Natsir Mansyur projected the tax revenue decline will continue until 2018. "Bauxite, nickel, iron, and copper mines are the most affected by the ban on raw materials exports," he said.  

Natsir said that the ban has led the values of four mining commodities to plunge since January 2014. "The products could not be exported in processed form yet, as there is still not enough smelters available in the country," he said.

AMOS SIMANUNGKALIT | CANTIKA BELLIANDARA | JAYADI SUPRIADIN