Improving State Revenue, BI Applauds Govt?s Success in Mining Renegotiation

 
Fathan Qorib, Ady TD Achmad, Robert Sidauruk
 
Bank Indonesia (BI) has applauded the government’s efforts in achieving favorable outcomes with the renegotiation of Contracts of Work with hundreds of mining companies. As a consequence of the renegotiations, the benefits to the nation under the Contracts of Work have improved.
 
“We’re glad for the renegotiation process, as it will strengthen national export activities in the non-oil and gas sector,” said Governor of BI, Agus Martowardojo, in Jakarta last Friday.
 
Mr. Martowardojo believes that the resultant increase in export activities due to the renegotiations has created improvements in state revenue for the first half of this year.

Overall there has been a positive contribution to the balance of the State Budget although the subsidized fuel allocations are still creating challenges for the government in preventing deficits.
 
“The import of subsidized fuels and the deficit in national oil production are still challenges for Indonesia,” said Mr. Martowardojo.
 
Despite the current improvement to mineral exports, Siti Maimunah, a member of the Women and Mining Working Team (TKPT), reminded the government, particularly the new administration, not to only focus on satisfying domestic energy demand, but also give attention to limiting energy consumption.
 
Taking the cement industry as an example, Mrs. Maimunah notes that 50% of national coal consumption is used as a raw material for this industry. In fact, the cement industry is not only using coal as its primary raw material, but also water and other environment resources, which is leading to environmental damage.
 
Another measure that could be taken by the government, according to Mrs. Maimunah, is to encourage the development of new and renewable energy, such as wind, geothermal, biomass, and other environment-friendly energy, to start reducing the dependency on conventional energy sources.
 
Similar measures, said Mrs. Maimunah, have been taken by the People’s Republic of China which is committed to reducing the use of fossil fuels by 20% by 2020.
 
“The new administration must address the issues of both energy production and consumption,” concluded Mrs. Maimunah.
 
(hot/kc)
 
Fathan Qorib, Ady TD Achmad, Robert Sidauruk
 
Bank Indonesia (BI) has applauded the government’s efforts in achieving favorable outcomes with the renegotiation of Contracts of Work with hundreds of mining companies. As a consequence of the renegotiations, the benefits to the nation under the Contracts of Work have improved.
 
“We’re glad for the renegotiation process, as it will strengthen national export activities in the non-oil and gas sector,” said Governor of BI, Agus Martowardojo, in Jakarta last Friday.
 
Mr. Martowardojo believes that the resultant increase in export activities due to the renegotiations has created improvements in state revenue for the first half of this year.

Overall there has been a positive contribution to the balance of the State Budget although the subsidized fuel allocations are still creating challenges for the government in preventing deficits.
 
“The import of subsidized fuels and the deficit in national oil production are still challenges for Indonesia,” said Mr. Martowardojo.
 
Despite the current improvement to mineral exports, Siti Maimunah, a member of the Women and Mining Working Team (TKPT), reminded the government, particularly the new administration, not to only focus on satisfying domestic energy demand, but also give attention to limiting energy consumption.
 
Taking the cement industry as an example, Mrs. Maimunah notes that 50% of national coal consumption is used as a raw material for this industry. In fact, the cement industry is not only using coal as its primary raw material, but also water and other environment resources, which is leading to environmental damage.
 
Another measure that could be taken by the government, according to Mrs. Maimunah, is to encourage the development of new and renewable energy, such as wind, geothermal, biomass, and other environment-friendly energy, to start reducing the dependency on conventional energy sources.
 
Similar measures, said Mrs. Maimunah, have been taken by the People’s Republic of China which is committed to reducing the use of fossil fuels by 20% by 2020.
 
“The new administration must address the issues of both energy production and consumption,” concluded Mrs. Maimunah.
 
(hot/kc)
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