PSC in Mining Sector in Debate, State Revenue Not Optimal

Selasa, 18 Desember 2012 | 09:11

Production Sharing Contract (PSC) scheme is definitely not applied on Mineral and coal mining business partnership since mineral and coal have longer production process compared to the oil and gas.The Executive Director of Indonesia Mining Association (IMA) Syahrir  said that as the consequence, at various stages of the mining production are subjected to taxes.

"Mining process is not only up until exploitation, but continued all the way up before any product is produced, which because of the time consuming resulted higher risk, "he said in Jakarta, last weekend.

The tax system is imposed at various stages of mining production is considered better than the PSC scheme, since in the PSC is known recovery costs which is not covered by the company directly.

Syahrir breakdown at least there were at least 27 miners obligations to be fulfilled to the Central and local Governments.  As quoted from  IMA disclosure, the 27 items among others are  income tax as stated in law on  Income Tax no. 21/26, Income Tax article no. 22;, Income Tax Article no. 22 regarding Import, Income Tax article no. 23, Income Tax article no. 26 regarding personal Income Tax, VAT Article no. 25/29 on Institution, VAT final and Fiscal, Domestic VAT, Import Income Tax ,  Personal, Income Tax Article 25/29 Agency, Income Tax and Fiscal Final, Domestic Income tax, Import Income Tax, other Income Tax & Income Tax of Luxury Goods.

In addition, the miner must also meet the obligations of the Property Tax, Stamp Duty, interest dividends and royalties (PBDR), some other indirect taxes, PKB-SWP3D, Local Taxes, Levies, third party donations, Mining Royalty, Dead Rent, PSDH / DR, Fee Concession forest, disturbed forest and non-tax revenues.

In contrary, PSC Specialist Sutadi Pudjo Utomo said the Government should apply the PSC system in doing business in mining and coal sector since the Country is considered not getting optimal results from the Mining sector due to the implementation of the concession system using royalty scheme.

"One of the biggest losses to be precise is in Mining sector. Up until now there is no acurate accounting of production and revenue so far, "he said.  He confirmed he made mining grand design using PSC scheme as the revenues can be predicted to increase by approximately IDR800 billion only mining sector.

"I have completed the 2012 – 2014 mining grand design 2012-2045 and submitted to the Regional Representatives Council (DPD), “he explained.

While, the ReforMiner Executive Director Pri Agung Rakhmanto commented the licensing regime currently applied in the Mining sector resulted management inefficiency. Although the government introduced a system of concessions to business (B to G), however, the Government is still unable to revoke the license whenever a problem arise.

In a concession system according to him, the government can’t interfere management but receiving royalties and taxes. The amount received by the Country in the concession system specified by royalty rates, operating costs also depends on the tax deduction that is not controlled directly by the Government. (35/dpr/msw)

by Lili Sunardi