Non-taxation revenues target may be missed

JAKARTA. The government is unlikely to achieve the target of non-taxation state revenues (PNBP) from natural resources this year, as the exports faltered at the early of the year. Aside of the issues related to the export, the unsettled license would be another problem, which might affect to the non-taxation revenues.

In terms of mining, as well as mineral and coal sectors, only 6,219 responsible payers out of 9,433 responsible payers that have secured mining license with the status of ‘clean and clear’. Furthermore, the renegotiation processes of 20 companies with the status of Contract of Work, as well as 51 companies with the status of Coal Mining Business Agreement (PKP2B) have yet to settle.

In addition to those two issues, the non-taxation revenues in mining and mineral-coal sectors are also facing issue related to the monitoring process over the volume and calories rate of the produced coal that has not yet been optimized.

Also, the mining and mineral-coal sectors are lack of the database and the information system, which are integrated with the Online Information System of Non-Taxation Revenues (SIMPONI). The database and the information system provide data and information related to the production data, price, sales volume, and the commodity item.

In terms of oil and gas sector, the government might miss the revenues target, due to the reduction in production by 6% per year, the low return of oil and gas reserves at less than 50% during the recent 5 years, as well as the lack of new oil and gas fields’ invention.

The Directorate General of Budget Affairs at the Ministry of Finance Askolani said, the government is conducting verification on the number of mining business holders that lack clean and clear status. “The potential loss of the PNBP will depend on the results of verification process,” he told KONTAN, Wednesday (22/2).

The government has been missing the targets of PNBP in oil and gas, as well as in non-oil and gas sectors since 2015. The data of Ministry of Finance show that the realization of PNBP in the oil and gas sector in 2015 had just amounted to Rp 78.2 trillion of the target of Rp 81.4 trillion. Meanwhile, the realization of PNBP in the non-oil and gas sector in 2015 had just amounted to Rp 22.8 trillion out of the target of Rp 37.6 trillion.

Chief of Fiscal Policy Agency at the Ministry of Finance Suahasil Nazara said, the government is pursuing tax compliance and the non-taxation compliance to reach the target of state revenues.

The Minister of Finance Sri Mulyani Indrawati added, the Ministry of Finance, as well as the Ministry of Energy and Mineral Resources and the Ministry of Home Affairs will conduct supervisions over the compliance of the mining license holders. “We have conducted tax inventory. I also have asked the Directorate General of Budget Affairs and the Directorate General of Financial Balance to inform the local governments, if they found some mining license holders that have yet to submit annual notification letter in their respective regions. Many license are issued by the local governments,” she said.

(Muhammad Farid/Translator)