Government strengthens mining governance through digitalisation
Improvements in gold governance have already been implemented, one of which is through the use of applications such as e-PNBP. With this system, activities that do not comply with regulations cannot enter the official system,” stated the Director General of Minerals and Coal at the Ministry of Energy and Mineral Resources (ESDM), Tri Winarno, in a statement received in Jakarta on Friday.
Tri Winarno noted that the use of digital systems like e-PNBP serves as an instrument to ensure that mining activities recorded within the official system are properly documented. In addition to strengthening oversight systems, mining governance also involves the state’s role in managing mineral resources through state-owned enterprises (SOEs) in the mining sector.
The Executive Director of the Centre of Reform on Economics (CORE) Indonesia, Mohammad Faisal, believes that strengthening the role of SOEs, such as MIND ID, can increase the mining sector’s contribution to state revenue. “As an agent of development, MIND ID acts as an extension of the state in the mining sector, ensuring that the economic value of natural resource management provides greater benefits to the country,” said Faisal.
Through integrated management under the MIND ID holding company, member companies including ANTAM, Bukit Asam, INALUM, Freeport Indonesia, PT Timah, and Vale Indonesia are recorded to have contributed more than Rp98 trillion to the state throughout 2022–2024 via dividends, taxes, and non-tax state revenue (PNBP).
On the other hand, mining expert and Advisory Board member of the Indonesian Mining Experts Association (Perhapi), Rizal Kasli, warned that mineral wealth is not infinite, and therefore its utilisation must be conducted carefully and in a measurable manner. According to him, illegal mining practices remain a major challenge as they not only deplete resources but also cause environmental damage and reduce potential state revenue.
“In addition to draining mineral resources, illegal mining also causes environmental destruction and financial losses for the state,” said Rizal.