PKB Supports Minister Purbaya to Implement Export Tax on Coal

JAKARTA - Chairman of the PKB Faction of the DPR RI, Jazilul Fawaid, stated that his party supports the steps of the Minister of Finance, Purbaya Yudhi Sadewa, who plans to implement the Exit Tax (BK) policy for coal exports. He assessed that this step is a bold breakthrough to end the anomaly of state revenue, which has actually been a loss due to the tax restitution scheme in the mining sector.

Jazilul emphasized that the policy is a tangible manifestation of economic sovereignty that favors the people as a mandate of Article 33 of the 1945 Constitution. According to him, it is time for the state to receive fair compensation from the dredging of natural wealth that is carried out massively by corporations.

"We in the PKB Faction appreciate the courage of the Minister of Finance Purbaya. It is unreasonable if the state is actually 'scared' because it provides subsidies through tax refunds to coal companies that are already very established and rich. This Exit Tax policy is a corrective step to ensure that our natural wealth really benefits the public, not just a handful of businessmen," said Jazilul Fawaid in his statement, Saturday, January 2.

Jazilul also highlighted that so far the coal industry has been the economic darling, but often leaves a trail of environmental damage whose cost of recovery is actually charged to the state and society. With the exit tariff, he said, the government can collect reserve funds for the development and improvement of the environment.

"The situation so far is very unbalanced. The coal industry ecosystem only benefits a group of entrepreneurs, while the environmental and social impacts are felt directly by small people around the mine. With the Exit Tax, we are changing the industry ecosystem to be more fair and oriented towards public interests," he said.

Jazilul revealed that major players in the Indonesian coal industry have enjoyed extraordinary profits (windfall profit) in recent years. In fact, he said, the accumulated net profit of giant coal companies in Indonesia when totaled could reach hundreds of trillion rupiah per year when commodity prices soared.

"In fact, many large mining companies have recorded very high net profit margins, far above other manufacturing or service industries," he said.

The legislator from the East Java constituency also appealed to coal entrepreneurs to be cooperative and accept this policy with a big heart. Jazilul reminded that the sustainability of their business also depends on the social and economic stability of the country.

"We ask the kakap entrepreneurs not to make excessive objections anymore. The benefits enjoyed so far are very large. Contributing a little more through the Exit Tax will not make the company bankrupt, but will help strengthen the foundation of the national economy and the welfare of the Indonesian people," he concluded.