BPK Issues Recommendations to Improve Governance and Performance in the Mining Sector
Jakarta (ANTARA) – Indonesia’s Audit Board (BPK) has issued a series of strategic recommendations to improve performance and governance in the mineral and coal mining sector.
“On monitoring land clearance and reclamation, BPK recommends updating the integrated monitoring system and strengthening guidelines and sanctions to ensure the sustainability of environmental restoration,” acting BPK Member IV Nyoman Adhi Suryadnyana said when presenting the Compliance Audit Report on Mineral and Coal Mining Management for 2023 to the first half of 2025 to Deputy Minister of Energy and Mineral Resources Yuliot Tanjung.
On oversight of coal export sales, BPK has called for stronger application-based monitoring mechanisms capable of automatically detecting the use of State Revenue Transaction Numbers (NTPN) through data reconciliation across ministries and agencies, he said in a written statement received in Jakarta on Friday.
BPK also encouraged the development of an integrated application system for the electronic submission and evaluation of Work Plans and Budgets (RKAB), together with stronger monitoring of companies’ periodic reporting.
He added that BPK recommended drafting regulations setting criteria for processing and refining facilities, as well as integrated cross-ministerial oversight linked to e-PNBP and SIINAS to improve downstream-industry governance.
Regarding state revenue obligations, BPK recommended following up on the determination and collection of adjustments to royalty and sales proceeds of minerals (PHT) obligations, he said.
Nyoman also praised the harmonious communication and constructive cooperation of the Ministry of Energy and Mineral Resources, which had enabled the audit process to run smoothly and accountably.
BPK concluded that, in general, mineral and coal mining management in 2023 through the first half of 2025 by the ministry and other relevant agencies complied in all material respects with applicable laws and regulations.
“Strengthening the Audit Board’s audit approach is not merely an internal need, but part of efforts to improve national development governance. BPK’s role should evolve beyond producing oversight to providing insight and foresight for policymakers,” he said.