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

Despite initial hopes that the reporting obligation had been suspended, compliance challenges brought by Brazil’s indirect tax reform are very much a reality
As tax authorities embrace AI and governments weigh pillar two reforms, Latin America is developing a more connected and internationally focused tax agenda
Advisers with pre-existing corporation tax or self-assessment accounts must now register or risk enforcement action from HMRC
India's tax authorities are increasingly scrutinising the rationale behind cross-border structures
Sharmila Sanmugam's move from industry to WTS UK offers an early glimpse into how the fledgling firm hopes to compete with larger rivals
Historical claims involving KPMG Australia's tax practice have surfaced as the firm battles a separate parliamentary inquiry into its handling of whistleblowers
While AI is revolutionising tax work, it is also reshaping clients’ willingness to pay for advice and their perception of the value generated by tax advisers
From Dhruva Advisors to Svalner Atlas, Ryan is growing fast. Tom Shave discusses consolidation, competition, and tax’s private equity debate
Awards
ITR is delighted to reveal the shortlisted nominees for the Middle East Tax Awards
The UK has confirmed its approach to the OECD’s side-by-side deal, but US-parented groups may find pillar two compliance remains far from straightforward
Gift this article