Government revises non-tax revenue target

The government is in the process of revising the so-called non-tax revenue target this year from the mining sector as the original target of Rp 52.2 trillion may not be achieved considering the current downturn particularly in the coal market.

Director General of Mineral and Coal Bambang Gatot Ariyono said Friday that he could not disclose the new figure yet as the revised non-tax revenue target is currently being finalized.

The non-tax revenue target of 52.2 trillion, about 80 percent to be contributed by the coal mining sector, is based on the assumption of higher coal royalty of 13.5 percent. But the government has dropped the planned increase in the coal royalty following protest from miners already suffering from multi years of coal price decline.

Meanwhile, Coal Management and Development Director at the directorate, Adhi Wibowo said that as of September, the non-tax revenue collection has reached Rp 22.6 trillion, or 43.2 percent of the full-year target.

He also said that a delay in the planned royalty hike has forced the government to revise the non-tax revenue target for this year.

The government initially expected the country?s coal output this year to reach 425 million tons, but realized output is now expected to be lower at 390 million tons.

Editing by Reiner Simanjuntak