Mining Companies Will Get Tax Incentives If Forest Rehabilitation At IKN

Mining illustration (photo: between)

The Capital Archipelago Authority (OIKN) admits that it has a heavy homework (PR) because it has the responsibility to rehabilitate forest land of around 120,000 hectares (ha) in the IKN Nusantara area.

Director of Forestry Utilization and Deputy Water Resources Development for Environment and Natural Resources of the IKN Authority Pungky Widiaryanto said that his party is currently developing a mechanism to provide tax deduction or tax incentives of up to 200 percent.

This is given to mining companies that have already used forest areas in IKN for their mining activities.

"There is a kind of incentive from the government to reduce taxes, tax deduction, to 200 percent. We are also developing this mechanism," said Pungky in the agenda of the Public Consultation of the Biological Diversity Management Master Plan virtually, on Wednesday, December 27.

Pungky said mining companies have an obligation to rehabilitate outside their mining areas, with a rehabilitation area of the mining area. His party will provide land in the IKN area for the rehabilitation.

"For example, one company wants to rehabilitate in 2,000 hectares and spends an example of Rp. 100 billion. Well, it can be claimed as double tax deduction for the company," he explained.

According to Pungky, this step is expected to help his party in rehabilitating forests at IKN. Meanwhile, based on OIKN data, there are around 120,000 hectares of land that need rehabilitation or restoration.

He considered that this could not be done by the government itself, so collaboration from other parties was needed.

"Of course this is a fairly large area. This cannot be done by the government itself. We also offer collaboration with third parties, be it private, academic or NGOs to restore or restore the forest in IKN," he said.

In addition to the private role through the incentives, a number of other mechanisms have also been prepared by OIKN to realize 65 percent of the IKN area as a green protected area. Including through the use of the APBN, both through OIKN itself, KLHK, and local governments.