Indonesia wants more tax from mining

International Tax Review is part of Legal Benchmarking Limited, 1-2 Paris Garden, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2026

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement


Indonesia wants more tax from mining

fotoflexer-photoindonesianflag.jpg

The mining industry is one of four the Indonesia’s Directorate General of Taxation will be targeting in 2013 in a bid to collect more tax. The authorities also want to improve the ability of officers to detect tax avoidance and boost compliance.

Official data shows that slow global economic growth and a reduction in demand for minerals, which contributed to lower prices and profits, led to a fall in tax receipts from the sector last year.

The government’s tax revenue target for 2013 is Rp1,031.8 trillion ($107 billion). Last year it aimed to collect Rp879.4 trillion but only brought in Rp831.3 trillion.

“The booming sectors are manufacturing, mining, plantations and financial services,” said Fuad Rahmani taxation director general, during a press conference in Jakarta this week. “We also plan to reevaluate construction and property, as well as the transportation sector, to optimise potential tax income from those sources,” he added.

Rahmani and his staff will also try to increase Indonesia’s corporate tax base during 2013, the Jakarta Post reported.

Only 500,000 businesses are registered as taxpayers, official data shows, though there are believed to be an estimated 22 million potential businesses in Indonesia.

“So far, we have not been able to properly conduct a significant tax-base extension. This means that there is still a lot of room for our tax income to grow,” Fuad said.

The director general added that staff needed to increase their skills to deal with tax avoidance.

“We need to improve our officers’ capacities. They need to take more initiatives and be creative. Taxpayers have become more and more sophisticated in avoiding taxes, therefore, our officers need to improve as well,” he said.

more across site & shared bottom lb ros

More from across our site

As global capability centres use AI to deliver services, MNEs face a fresh wave of PE and TP exposure that their existing playbooks weren't built for
The deal for Comtax hands Ryan immediate scale in Brazil, with a near-70-strong team serving clients from São Paulo
The arrivals of Julio Castro and Adam Blakemore mean the firm has added six tax partners to its global practice since the start of 2025
Tax authorities have gained unprecedented transparency through CbCR, but a new study suggests they may not be looking in the right places
The future chief tax officer will be judged not only on compliance, but on their ability to harness data, technology and AI to support strategic decision-making
More than 200 tier promotions reshaped this year's European rankings as several international firms strengthened their positions in key tax markets
Ryosuke Takemura, OECD policy adviser, countered that the organisation’s role is ‘not to solve these issues one by one’ but to prevent tax disputes in general
Awards
ITR is delighted to reveal all the shortlisted nominees for the 2026 Asia-Pacific Tax Awards
Monica Erasmus-Koen and her Taxtimbre team will be responsible for building the firm’s TP capability in the competitive Netherlands market
Haynes Boone’s new London partner, Alexandra Ueno-Park, argues that one-size-fits-all policies, billable-hour targets and outdated networking expectations can hold talent back
Gift this article