REPUBLIKA.CO.ID, JAKARTA - Indonesia's Corruption Eradication Commission (KPK) asked government to review the tax system in mineral and coal mining sector. KPK's deputy chairman, Adnan Pandu Praja said that in a press conference attended by KPK's deputy chairman (Bambang Widjojanto), Director General of Taxation (Fuad Rahmany) Research and development's director in KPK (Roni Dwi Susanto).

"We found many cases and gave some recommendations related to mining sector, especially mineral and coal. We have reported it to Director General of Taxation and we expect the reply within one month," Praja said recently.

KPK identified seven issues of taxation on mineral and coal sector. About 25 percent or 724 out of 3,826 mining businessmen have no taxpayer identification numbers. 

KPK cited, Directorate General of Mineral and Coal recorded the tax value of 228 million USD in 2012. However, World Coal Association (WCA) recorded 443 million USD, while US Energy Information and Data Administration (EIA) recorded 452 million USD.

KPK also found multiple interpretations of tax application and lacking of regulation to support data gain of external data taxation. The next, external data request over tax is not optimal, the shortage of human resources work as tax inspectors -currently there are only 4,000 officers- and analysis of potential tax is not optimal. 

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