Indonesia to stop services to miners who fail to pay taxes
STARTING on January 1 next year , the government will stop providing services to mining companies that failed to pay their taxes for 2017, the Energy and Mineral Resources Ministry’s Mineral Resources and Coal Director General Bambang Gatot Ariyono has said.
In a letter dated November 23, the ministry calls on several government institutions to stop serving mining companies – regardless of whether they have the clean and clear (CnC) status or not – that have failed to honor their tax obligations.
“The relevant institutions will block the companies and refuse to serve them," said Bambang, as reported by kontan.co.id. He cited as an example that those companies would not get export recommendations.
The letter was addressed, among other institutions, to the Law and Human Rights Ministry’s General Law Administration Directorate General, the Corruption Eradication Commission (KPK), the Customs and Excise Office and the Transportation Ministry’s Sea Transportation Directorate General.
Bambang said tough punishment was needed, because many holders of mining permits (IUP) had not paid their taxes, with unpaid taxes totaling 4.3 trillion rupiah (US$301 million).
The government has issued 9,704 mining permits – 6,565 for companies assessed as CnC and the others for companies that have not achieved CnC status.
Law and Human Rights Ministry General Law Administration Director General Fredi Haris expressed his support for move of the Energy and Mineral Resources Ministry and his readiness to stop serving companies that failed to pay taxes.