Increase In Coal Price Bringing PNBP Lampaui Mining Sector Capai Target IDR 173.5 Trillion

Illustration. (Photo: Doc. Antara)

JAKARTA - The Directorate General of Mineral and Coal (Ditjen Minerba) of the Ministry of Energy and Mineral Resources recorded non-tax state revenue (PNBP) from the mining sector as of December 16, 2022, amounting to IDR 173.5 trillion. This amount is about 170 percent of the set target of IDR 101.8 trillion.

"For 2022, the mining sector will continue to make a positive contribution to the country's economy. PNBP's contribution in 2022 will greatly increase compared to the previous year. If 2021 is IDR 75.48 trillion, in 2022 there will be an increase of IDR 173.5 trillion or 170 percent of the target," said Director of Mineral and Coal Revenue at the Directorate General of Mineral and Coal, Yose Rizal in his official statement quoted by Antara, Thursday, December 30.

The details of this achievement, continued Yose, were obtained from fixed contributions of IDR 900.1 billion, royalties of IDR 100.3 trillion, sales of mining products (PHT) of IDR 67.7 trillion, and others of IDR 4.5 trillion.

According to Yose, the magnitude of PNBP's achievements is influenced by the price of mining commodities which are currently brilliant. For coal, for example, the highest price this year reached 330.97 US dollars per ton at the Coal Reference Price (HBA) October.

"This increase in PNBP is very dependent on a number of parameters, namely commodity prices, production volume, royalty percentage, and mandatory payment compliance. Currently, commodity prices are good," he explained.

The soaring price of coal was driven by rising demand, especially from India, China, and several European countries.

The electricity crisis that hit India due to the heat wave caused the Indian government to increase the number of coal imports due to the strict domestic supply. Meanwhile, China was recorded to have increased coal supply ahead of winter and imposed a policy of eliminating coal import taxes.

The European Union issued a policy to ban coal imports from Russia effective last August. European countries decided to reuse coal as a source of power generation.

"In addition to coal, most other mining products also continue to experience price increases, such as copper concentrate, iron concentrate, laterite iron concentrate, iron sand concentrate, Ilmin concentrate, routine concentrate, and bauxite that has been washed bauxite," explained Yose.

Currently, he continued, the government is making various digitalization efforts to ensure optimization of state revenues from the mining sector, one of which is through the e-PNBP application. The application is considered to be able to speed up the process for business actors to meet fixed fees and royalties.

In addition, e-PNBP will also make it easier for evaluators to take an inventory of business actors who have not fulfilled their obligations. Mainly to speed up the collection process so as to make it easier for the government to stop services if the taxpayers are obliged to commit violations.

Through the digital mechanism, the obligatory payers will be more obedient and minimize illegal transaction opportunities. So that PNBP in the mining sector can be more optimal. The Directorate General of Mineral and Coal integrates between e-PNBP and surveillance applications, namely the Minerba Online Monitoring System and e-RKAB," said Yose.