Non-Tax Revenue from Mineral and Coal 179.14% of Target, Says Official

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 470.Pers/04/SJI/2021

Date: 21 December 2021

Non-Tax Revenue from Mineral and Coal 179.14% of Target, Says Official

Director of Mineral and Coal Revenue of the Ministry of Energy and Mineral Resources (EMR), Muhammad Wafid, said Non-Tax State Revenue (PNBP) from the mineral and coal subsector until 10 December 2021 amounted to Rp70.05 trillion, or 179.14 percent out of the set target of Rp39.1 trillion.

"Amid the challenges of the Covid-19 pandemic, the Directorate General of Mineral and Coal can still meet the PNBP target," said Wafid in a press conference titled 'Achievements of the Mineral and Coal Subsector in Q4' held on Tuesday (21/12).

Wafid went on to say that investment in the mineral and coal subsector until 10 December 2021 stood at USD3.5 billion, or 81.3% of the 2021 target of USD4.3 billion.

Meanwhile, the realized production and use of minerals, particularly nickel-related products such as ferronickel, Nickel Pig Iron (NPI), and nickel matte, had increased quite significantly although had yet to fulfill the set target.

"For coal utilization, the realization reached 560 million tonnes or 89.6% of the target of 625 million tonnes. Meanwhile, domestic coal utilization has touched 121.3 million tonnes, or 88.2% of the 137.5 million tonnes target. And the most important thing is that all domestic coal demands have been met," said Wafid.

Speaking about the progress on smelter construction, Wafid said four smelters were built in 2021. A smelter that belongs to PT ANTAM has progressed by 97.7%, while one belonging to PT Nikel Indonesia in Banten has finished construction and is now holding production trials. Moreover, the smelter of PT Cahaya Modern Metal Industri in Banten has also completed construction and begun production, while that of PT Kapuas Prima Citra in Central Kalimantan has reach 99.87% of progress.

"The total number of mineral refining facilities built until 2020 is 19 smelters, and the plan is to increase the number to 53 smelters by 2024," added Wafid.

In terms of reclamation of ex-mines, the realization until this month has clocked up 8,539 hectares, or exceeding the target of 7,025 hectares. Meanwhile, the realization of Community Empowerment Program until 10 December 2021 amounted to Rp1,193 trillion.

"The Directorate General of Mineral and Coal has continued to oversee the implementation of ex-mine reclamation. The new Mineral and Coal Law imposes strict sanctions, including criminal sanctions, for business actors who do not carry out reclamation," Wafid commented.

On the same occasion, Wafid also explained that based on Law Number 3 of 2020 on Mineral and Coal, local workers are given employment priority. Additionally, Regulation of Minister of EMR Number 25 of 2018 on Mineral and Coal Mining Business sets out that if there are no local and/or national workers who have the required competencies and/or qualifications, Business Entities may use foreign workers in the context of technology transfer and/or expertise transfer. Business Entities must also provide education and training programs as well as improve the competency of workers. (IY)

Head of Bureau of Communication, Public Information Services, and Cooperation

Agung Pribadi (08112213555)

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