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

The profession is fundamentally restructuring itself around what tax and accounting work should be, a Thomson Reuters leader told ITR
The big four firm is consolidating 16 entities across the region to create a single 6,000-partner behemoth
Brazil’s tax reform unifies consumption taxes to simplify rules, centralise administration and reduce legal uncertainty
The ever-expansive firm has once again attracted a former ‘big four’ talent to lead the new offering
The amended double taxation avoidance agreement removes France’s most favoured nation status for tax treaty benefits
The levies extended beyond the president’s ‘legitimate reach’, the Supreme Court ruled
While Brazil’s consumption tax overhaul led to a short-term spike in tax advisory demand, we are now in a period of ‘normalisation’ marked by decreased recruitment
The expanded firm will comprise roughly 8,500 employees, including 550 partners; in other news, Paul Hastings and Macfarlanes made senior tax hires
Meanwhile, one expert highlights the importance of separating Venezuela’s tax authority from direct political control after ‘lost decades and isolation’
With PMK 108, Indonesia has upgraded its tax transparency regime for the digital era, focusing on data quality, governance, and cross border exchange rather than expanding regulatory reach
Gift this article