By Jeany Hartriani
The level of royalty compliance for mineral and coal companies is still low, even though this sector has a large role in state income. The 2014 Extractive Industries Transparency Initiative (EITI) report noted that 80 percent of the country's royalty income came from just 75 companies that joined the initiative, which began to be implemented in 2010.
Openness in the mineral and coal sectors is relatively low. Of the total 10,922 companies holding IUPs in Indonesia, only 120 are EITI members. The company is also the largest in Indonesia. While the rest are small companies spread across various regions.
The low tax and royalty compliance of extractive entrepreneurs is one of the things highlighted by the government. The Minister of Finance, Sri Mulyani, confirmed that he would increase state revenues, including through the tax amnesty program and routine tax collection from mineral and coal entrepreneurs.
https://katadata.co.id/infografik/2017/09/12/potensi-besar-royalti-minerba
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