Miners Refuse the Land Use Tariffs Hike, Govt to Suffer Big Revenue Loss

Jumat, 25 Januari 2013 | 08:25

Mining circles reject the Government’s plan to increase the land-use rate of the forest by 33% due to the current tariffs is consider to too low.

The Vice Chairman of the Indonesian Mining Association (IMA) Tony Wenas reveals that the lending rate for mining activities in the forest area which currently stands at IDR3 million per hectare has already burdened the mining players. With the planned increase, it will threat the sustainability of the miners.

"If the rate goes up by 33% as was informed by the MEMR Ministry, the costs will also rise. I can guarantee that this will make the miners’ life difficult, "he said when contacted in Jakarta, Tuesday (1/22).

Tony said the Government should review the definition of land area to be disturbed by mining activities. The problem is that, the miners are required to pay the rates of lend use forest way wider than their existing working areas.

In the Government Regulation (PP) No. 2/2008 regarding the non-tax revenues of the lend use of forest area for the mining sector is calculated by formula (L1 X rate) + (L2 X 4 X rate) + (L3 X 2 X rate) USD per year.

L1 classified as a disturbed area due to the use of forest areas for non-mining purposes, permanent supporting infrastructure with length of use depends on the mine activities. While L2 is the area disturbed by the use of temporary forest areas that technically do reclamation.

The definition of L3 is the area disturbed by the use of a permanent forest area that is technically not possible for reclamation.

Tony also calls the Government not to continue interfering the miners with set of regulations and the imposition of high tariffs. Currently, the prices of mining products are not promising in the international market.

"We've already got the mining permit from the Government. Even the working contract holders (KK) and work agreements of coal miners (PKP2B) received the permits from the Central Government. Preferably, all paperwork should come out from one door, therefore, the tariffs do not this way again," he said.

On the other hand, the Executive Director of Indonesian Coal Association (ICMA) Supriatna Sahala said the Government should review the plan to raise rates lend use forest areas for the mining sector by 33%.

"Miners will be of acceptance if the increase is proposed in a modest level of 10% to catch up with the inflation rate, however, if it most likely to burden them if the hike is as high as 33%, especially when the commodity prices are still not good enough," he said.

Sahala also asks the Government not to add up the PNBP tariff formula of the forest areas lend use for mining sector. "We definitely reject the Government's plan to add it with L4 formula in tax revenues composition in the tariff, since it obviously will kill the miners businesses, especially coal players, "he said.

APBI will send a letter to the Ministry of Forestry regarding their rejection to accept the hike of lending rates of forest use by 33%, in order to allow the miners to reorganize their businesses amid the current uncertain commodity prices.

The Forestry Minister Zulkifli Hasan says the revised PP itself is expected to be completed next week. He said the revision will not raise controversy because of the setting of the tariffs made clear.

Completing the plan, the Coordinating Minister for the Economy Hatta Rajasa says in addition to the rate increase lend use forest areas, the Government will charge for land use in the form of loans to the mining reserves.

The Government potentially suffers from a relatively high revenue loss if the land charge is reserved, moreover, when many big coal players who control large area under the land use scheme, don’t economically exploit the area. (dpr)

by Lili Sunardi
source http://en.bisnis.com