Miners warned to fulfill financial obligations to state before month end

Courtesy of Directorate General of Mineral and Coal

Director of Coal and Mineral Revenue at the Ministry of Energy and Mineral Resources Johnson Pakpahan warned miners in the country to fulfill their financial obligations including royalty to the state before the end-March deadline.

Johnson was speaking at a workshop over the weekend in Manado, North Sulawesi, attended by around 100 miners, the ministry said in a statement obtained Sunday, but no further details were provided.

As has been previously reported, the ministry said that unpaid financial obligations of the miners to the state (also called non-tax revenue from the mining sector) as per end of last year stood at Rp 6.65 trillion. Director General of Mineral and Coal at the ministry Bambang Gatot Ariyono said earlier this year that the government would revoke the mining permits of the miners if they fail in paying royalty and other financial obligations to the state by the deadline. He did not say when the deadline was.

According to the ministry, of the total Rp 6.65 trillion financial arrears, Rp 258.8 billion were owed by mineral miners holding the mining contract of work (COW) permit, Rp 2.37 trillion owed by coal miners holding the coal contract of work (PKP2B) permit, and Rp 4.01 trillion owed by miners holding the IUP mining business license.

Editing by Reiner Simanjuntak