Unpaid financial obligations of IUP miners exceed Rp 4t

Mining companies holding the so-called mining business permit (IUP) have unpaid financial obligations to the state totaling Rp 4 trillion, the amount of which is likely to increase once the government completes assessment process, Bisnis Indonesia reported on Monday.

The paper quoted Director for Coal and Mineral Revenue at the Ministry of Energy and Mineral Resources, Jonson Pakpahan as saying that the ministry is still in the process of collecting data on the payment of financial obligations of the IUP miners such as taxes and royalties.

He also said that some of the miners have appealed to the government to be allowed to pay the arrears through installment, while others have objected to the amount of arrears claimed by the government. Meanwhile, other IUP miners have moved from their original address, creating difficulties for the government in collecting the arrears.

He added that the government is ready to team up with the Corruption Eradication Commission (KPK) to deal with miners which have declined to pay their financial obligations for the past five years.

Elsewhere, Jonson said that tax arrears of large miners holding the so-called coal contract of work (or PKP2B) totaled about Rp 21 trillion. He, added, however, that only about Rp 1 trillion of that figure is likely to enter the state?s coffer as the government is obliged to reimburse value added tax (VAT) to PKP2B Generation I coal miners, which according to their contracts hold right to tax restitution.

?The most that can enter the state coffer is about Rp 1 trillion because of the (tax) reimbursement as set in the contract. That?s for the Generation I PKP2B miners, while for the PKP2B Generation III has been settled,? he said.

He said that the tax restitution issue of the PKP2B Generation I coal miners is to be decided by the Ministry of Finance. Some of the miners have previously complained that they have not been able to get the VAT restitution. (*)