OpinionExtractive Industry

[KataData] Flow of Illicit Money in the Indonesian Mining Sector Allegedly Reaches IDR 23.89 T

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The illicit money was obtained from money laundering and illegal cross-border transactions.

Publish What You Pay (PWYP) revealed allegations of illegal money flows in the sector mine which consists of oil and natural gas (oil and gas), minerals and coal in Indonesia. In fact, the report stated that the value of illicit money in 2014 reached IDR 23.89 trillion.

If detailed, the illicit money occurs through two loopholes. First, through the gap flow of hot money (hot money narrow). The value reached IDR 2.56 trillion. The flow of hot money can come from money laundering practices, corruption, tax evasion, and other illegal transactions that violate regulatory provisions in a country.

The second loophole is through, trade transactions (misinvoicing trades). Misinvoicing trades occurs as a result of illegal cross-border transactions related to trade in goods and services. The value reached IDR 21.33 trillion.

There is misinvoicing trades This is also reinforced by data from the Ministry of Energy and Mineral Resources (ESDM) which notes that there is a potential loss to the US$ state of 1.2 to 1.5 billion or the equivalent of IDR 18.3 trillion due to illegal coal exports. It is calculated that around 30 – 40 million tons of coal leave Indonesia through illegal trade.

Head of the Communications Bureau for Public Information Services and Cooperation at the Ministry of Energy and Mineral Resources, Agung Pribadi, said that he is currently investigating leaks that have the potential to harm the country. According to him, this is difficult to do through export because you have to get information from customs.

However, another step taken is to resolve the mining company's status so that it is no longer problematic (clean and clear/CnC). If it does not yet have CnC status, the mine will be closed.

Apart from that, the Ministry of Energy and Mineral Resources coordinates with the Corruption Eradication Commission (KPK). "Our friends and we have carried out evaluations, including with the KPK. "Actually, if you export, it won't go through, you have to get information from customs," he said to Katadata.co.id, Wednesday (8/8).

(Read: State Losses IDR 9 Trillion, KPK Investigates Alleged Corruption in Coal Exports)

However, according to Senior Research Article 33, Ermy Sri Ardhyanti, this leak can be seen from the amount of coal that leaves Indonesia and is received in export destination countries. “From the data, there are more goods circulating internationally than domestically. From there you can see gaps," he said.

Reporter: Fariha Sulmaihati

Editor: Arnold Sirait