Potential losses from mining royalty reach Rp488 billion: BPK
Friday, April 13 2012 - 02:35 AM WIB
An investigation by the Supreme Audit Agency has revealed that Indonesia is suffering potential financial losses from royalty of mining sector reaching Rp488.52 billion
The BPK investigated 77 mining companies holding the contract of works (KK) and 10 coal companies holding the coal contracts of works (PKP2B) and related institutions in Jakarta, South, East and Central Kalimantan in the 2nd semester last year.
BPK member Ali Masykur Musa at the press conference said that the deficit of state income from fixed dues, royalty and administrative sanctions on mining industry reached Rp95.58 billion and US$43.33 million or equal with Rp488.52 billion.
After the investigation, said Ali, a number of companies have paid its obligation. ?As of March 30, 2012, a number of companies have paid some Rp221.33 million and $9.40 million (both equal with Rp84.90 billion) representing about 17.37 percent of the total financial losses of Rp488 billion,? he said.
The Energy and Mineral Resources Ministry earlier said that the office planned to boost revenue from mining sector to Rp 108.22 trillion in 2012 from Rp 77.38 trillion last year.
Of the target, some Rp 81 trillion would be from tax revenue and Rp 27.22 trillion in non-tax revenue. For non-tax revenues, the government has targeted to earn Rp 159 billion in fixed dues, Rp 13.61 trillion in royalty payments and Rp 13.45 trillion in mining product sales.
Editing by Adianto P. Simamora