Govt revenue from mining sector far below target

Government revenue from the mining sector, also called non-income tax state revenue, as of November of this year totaled Rp 27 trillion, or only 51.7 percent of the full-year target of Rp 52.2 trillion.

Kontan quoted Sri Raharjo, Director for Mineral and Coal Management Program at the Ministry of Energy and Mineral Resources, as saying Saturday that there were many factors causing the weak revenue including the current downturn in coal price and a delay in the implementation of the planned higher coal royalty tariff.

The government initially planned to increase the royalty tariff of so-called mining business permit (IUP) coal miners, but canceled it due to strong protest from miners who have suffered from the coal downturn.

Sri said that additional non-tax revenue from the mining sector until of this year was expected to reach around Rp 30 trillion. (*)