Revenue Rises in Mining Sector, Thanks to KPK

 
Kartini Laras Makmur, Jazmi Adlan Bohari
 
The Ministry of Energy and Mineral Resources (ESDM) and the Corruption Eradication Commission (KPK) have visited companies holding Mining Permits (IUP) in 5 provinces and plan to visit more.
 
The KPK’s involvement is expected to help with solving emerging problems related to mining activities such as failure to pay royalties and reclamation funds, as well as not submitting mining activity reports to the Minstry of ESDM.
 
R. Sukhyar, Director General of Minerals and Coal at the ESDM, said that the ESDM and the KPK have warned mining companies who neglect their obligations to rectify matters immediately.
 
“They are under an obligation to report, especially Regents to the Minister of ESDM for mining activities in the Regent’s region,” said Mr. Sukhyar in Jakarta last Friday.
 
Paul Lubis, Director of Planning Programs at the ESDM has said that once they receive a warning letter from the ESDM and KPK, most mining companies respond positively and pay their outstanding debts. In two months, there has been an increase in state revenue of IDR 8 trillion as a result of the ESDM-KPK visits.
 
“If they do not pay in 6 months, they will have to deal with law enforcers. Thus, we are confident that in 6 months, all of the government’s rights will be satisfied entirely,” said Mr. Lubis.
 
The KPK has vigorously investigated tens of thousands of IUP holders since February this year in order to uncover state losses in the mining sector. So far, of the 10,922 IUP Holders that have been investigated, 6,042 had been verified as Clean and Clear (CNC). Bangka Belitung, and South and East Kalimantan provinces had the most CNC violations.
 
Mr. Lubis said that the Government will summon all Heads of Mining Departments in Indonesia and gather them at a summit to promote understanding and compliance with CNC obligations. The attendees will be briefed about the requirements that have been established the Government.
 
Isran Noor, The Chairman of the Association of Regional Governments, said that he is aware of a lot of objections to the proposed CNC summit. According to Mr. Noor, who is now also the Regent of East Kutai, the uncertain legal basis of CNC is what is causing the objections.
 
“We will fix all the complicated factors regarding this CNC issue,” said Mr. Noor.
 
(hot/kc)
 
Kartini Laras Makmur, Jazmi Adlan Bohari
 
The Ministry of Energy and Mineral Resources (ESDM) and the Corruption Eradication Commission (KPK) have visited companies holding Mining Permits (IUP) in 5 provinces and plan to visit more.
 
The KPK’s involvement is expected to help with solving emerging problems related to mining activities such as failure to pay royalties and reclamation funds, as well as not submitting mining activity reports to the Minstry of ESDM.
 
R. Sukhyar, Director General of Minerals and Coal at the ESDM, said that the ESDM and the KPK have warned mining companies who neglect their obligations to rectify matters immediately.
 
“They are under an obligation to report, especially Regents to the Minister of ESDM for mining activities in the Regent’s region,” said Mr. Sukhyar in Jakarta last Friday.
 
Paul Lubis, Director of Planning Programs at the ESDM has said that once they receive a warning letter from the ESDM and KPK, most mining companies respond positively and pay their outstanding debts. In two months, there has been an increase in state revenue of IDR 8 trillion as a result of the ESDM-KPK visits.
 
“If they do not pay in 6 months, they will have to deal with law enforcers. Thus, we are confident that in 6 months, all of the government’s rights will be satisfied entirely,” said Mr. Lubis.
 
The KPK has vigorously investigated tens of thousands of IUP holders since February this year in order to uncover state losses in the mining sector. So far, of the 10,922 IUP Holders that have been investigated, 6,042 had been verified as Clean and Clear (CNC). Bangka Belitung, and South and East Kalimantan provinces had the most CNC violations.
 
Mr. Lubis said that the Government will summon all Heads of Mining Departments in Indonesia and gather them at a summit to promote understanding and compliance with CNC obligations. The attendees will be briefed about the requirements that have been established the Government.
 
Isran Noor, The Chairman of the Association of Regional Governments, said that he is aware of a lot of objections to the proposed CNC summit. According to Mr. Noor, who is now also the Regent of East Kutai, the uncertain legal basis of CNC is what is causing the objections.
 
“We will fix all the complicated factors regarding this CNC issue,” said Mr. Noor.
 
(hot/kc)
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