REPUBLIKA.CO.ID, JAKARTA -- The Corruption Eradication Commission (KPK) has carried out a study about the system of non-tax state revenues (PNPB) of mineral and coal that has been presented by Ministry of Energy and Mineral Resources in August 2013. They found a gap causing state losses from 37 contract agreements and 74 coal contracts of work (PKP2B).

Type of PNPB that was implemented to mineral and coal was lower than mineral mining permits. Whereas, Commission found that Ministry of Energy and Mineral Resources had agreed to renegotiate the royalty rates of all contracts and PKP2B. The Ministry has also applied penalties for uncooperative companies in renegotiation process.

KPK Spokesman, Johan Budi explained that KPK had sent a letter (B-402/01-15/02/2014) to Minister of Energy and Mineral Resources also copied to President on Feb 21, 2014. Renegotiation process is including aspect of mining area, employment, divestment, as well as processing and refining of mining in the country. Commission saw that contract renegotiation process was too long.

"A long renegotiation process is not effective to state revenues and of course burdening financial state. We estimate that the excess revenue from one big mining company reached 169.06 million USD per year," Budi said on Sunday as reported by Muhammad Hafil.

PT Freeport Indonesia for example, the company is still enjoying the gold royalty of one percent of its selling price per kilogram (kg). In fact, in governmental regulation, the rate should be 3.75 percent of selling price per kg.

The long renegotiation process between government and Freeport Indonesia caused state loss of 169 million USD per year. National revenue was only 161 million USD out of 330 million USD. KPK regreted that there was no big penalty for contract holder who refused to renegotiate.

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