IUPK holder required to pay govt 4% of net revenue
Friday, January 27 2012 - 08:36 AM WIB
The newly-issued Government Regulation on tariff of non-tax receivable (PNBP) requires holder of exploration special mining business license (IUPK) on metallic mineral and coal to set aside 4 percent of its net revenue as compensation for the government.
Article 4 of the regulation says the holders of exploration mining business license (IUP exploration) and IUPK on metallic mineral and coal should also provide compensation for the government for data information on the mining area.
The holders of production operation both IUP and IUPK which had expired should also pay compensation to the government, so called the "replacement of investment cost".
?Total of compensation both for holders of exploration and production operation IUP and IUPK would be calculated based on the value of auction,? the regulation issued on January 12 says
The exploration IUP/IUPK is granted for the miners to conduct general survey, exploration and feasibility studies within the commercial mining business area and the state reserve areas.
The 2009 Mining Law categorizes three licenses for metallic mineral and coal mining.
The IUP is license granted for miners to conduct mining business activities in commercial mining business area.
The IUPK is a license allowing miners to run activities in the state reserve area, locally known as Wilayah Pencadangan Negara.
The People?s Mining License (IPR) is awarded to local investors doing mining business in limited size and investment in the people?s mining area.
Editing by David Mustakim