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KPK : 'Losses worth Rp6.7 trillion to state in minerals sector' JAKARTA - The Corruption Eradication Commission (KPK) said it has found losses to the state worth Rp6.7 trillion in the minerals and coal sector over the past nine years. The losses were in non tax revenues including royalty and fixed fee in the period of 2003-2011, KPK Deputy Chairman Busyro Muqoddas said here on Thursday.

Potential state losses in royalty not yet paid in 2010-2012 totaled US$1.22 billion, Busyro said in a news conference attended by Taxation Director General Fuad Rahmany and Deputy Minister of Energy and Mineral Resources Susilo Siswoutomo.

Royalty not yet paid by producers of main minerals including nickel, iron ore, copper, bauxite and manganese totaled US$24.6 million, he said. "There is no administrative sanction that has been meted out such as cancellation of license let alone penal sanction," he said.

He said there is an irony in the management of natural resources such as coal as Indonesia, which has only a coal reserve of 20 billion tons or 2.63 percent of the world`s total reserves, is now the largest coal exporter.

He cited in 2011, Indonesia exported 80 percent of its total coal production of 376 million tons. There were indications of systematic attempt of flagrant exploitation that the reserves would be depleted in 20 years, he said,

He said according to Fuad Rahmany, the state earnings in royalty could have been much larger but there are thousands of small harbors called by the taxation director general "rat ports" out of control.

"Such situation is caused by absence of synergy between the regional administrations and the taxation directorate general and the mineral and coal directorate genera," he said.

He said Susilo cited shortage in personnel as part of the causes of potential losses in fixed fee but the ministry plans to recruit 1,000 mining inspectors in the regions. KPK recommended revision of the law on regional autonomy no. 32 in 2004.

"It is time to revise the law on regional autonomy. We will initiate the move to bring the proposal to the government and the House of Representatives," he said. He said revision of regional autonomy should come first before debate on Criminal Code (KUHP) for the people`s interest.

Susilo said the energy and mineral ministry would take action on all KPK`s recommendations. Busyro acknowledged difficulty in controlling illegal shipments of minerals via thousands of rat ports. The state suffers considerable losses in levies from the smuggling of minerals and coal from the rat ports, he said.

Fuad Rahmany complained about incorrect data owned by the taxation directorate general. What is important for the directorate general is data on production, exports and sales, he said. "As the system is self assessment, we depend on other technical agencies in the center and regions for data," he said.


Related blog entries (category 'Corruption') Related blog entries (category 'Corruption'):
14 August 2013 · KPK arrests head of SKK Migas
02 August 2013 · State lost Rp6 trillion due to corruption in 11 projects
18 July 2013 · Anti-graft body to question Andi Malarangeng on Friday
11 July 2013 · Another parliament member detained over corruption
25 June 2013 · Indonesia, China establish anti corruption cooperation
24 June 2013 · Trial of Luthfi to decide fate of Minister Suswono in graft case

Related blog entries (category 'Corruption') Tags: losses, state, trillions, oil, gas, sector


Posted in Corruption @ 29 August 2013 23:03 CET by Blog Bot · 'Blog' RSS feed · permalink






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