The Urgency to Control Coal Production and Export
Increased coal production and export amid weak supervision leaves a loophole that not only affects the loss of the state revenues, but also creates massive externalities to the ecosystem, environment, and society.
Potential Loss of State Revenues
There has been an indication of loss of the state revenues related to the coal export due to data discrepancy and poor company compliance. KPK highlighted in its study that the export difference resulted from the discrepant data on coal export between the Ministry of Energy and Mineral Resources and World Coal Institute (WCI) is amounting USD 12,267,781,200 (PWYP Indonesia, 2017). Meanwhile, according to the ICW, the coal export transactions that are not reported from 2006 to 2016 have indicated a total loss of the state of 133 trillion Rupiah (ICW, 2017).
Besides, poor company compliance also has been indicated by KPK in its study which compares surveyor data and government’s revenue (royalty). The potential loss of the state revenues as a result of underpaid royalties in 2010 - 2012 has reached USD 1.2 billion (KPK, 2014).
The abovementioned findings of KPK are supported by data of the Extractive Industry Transparency Initiative (EITI) Indonesia indicating a decrease in the number of companies meet the financial obligation, especially PNBP, from year to year. In 2016, that among the thousands IUP in Indonesia, only 1,654 IUPs that are recorded to have paid PNBP in 2016, half of the number in 2014. 90% of total PNBP of mineral and coal in 2016 has been contributed by 69 companies (EITI Indonesia, 2018).