Mining revenue sharing declines, NTB cuts official travel expenses
The West Nusa Tenggara (NTB) Provincial Government is preparing budget efficiency measures, including cutting official travel expenses, following a decline in mining sector revenue sharing (DBH) from PT Amman Mineral Nusa Tenggara (AMNT).
The Head of the NTB Regional Financial and Asset Management Agency (BPKAD), Nursalim, stated in Mataram on Monday that the decrease in mining revenue sharing has impacted the regional budget structure and pressured the local fiscal condition.
“Yes, the regional budget will certainly be corrected. This is due to the delayed operations of PT AMNT, which has consequently affected the revenue sharing from profits,” he said.
He emphasised that the local government cannot expect revenue sharing from PT AMNT to remain at 202_ levels, as the amount is regulated by government regulations, including those from the Ministry of Finance and the Ministry of Energy and Mineral Resources (ESDM).
“The amount is set at a certain percentage of the total operational results. This means the revenue sharing we receive is strictly according to the Government Regulation,” Nursalim added.
According to him, due to the decline in revenue sharing, the NTB Provincial Government is reviewing several efficiency measures, particularly regarding non-urgent expenditure items such as official travel and meetings.
“Certainly, non-urgent spending, such as official travel, will be targeted. However, the Regional Budget Team (TAPD) together with the Regional Revenue Agency (Bapenda) will also assess whether there is potential to increase revenue through local taxes and levies within our authority,” he explained.
Nevertheless, Nursalim noted that efficiency measures will not be implemented hastily, as the local government needs to comprehensively assess potential increases in regional income. He stated that the government will review both the revenue and expenditure sides to determine which items require savings, including travel and meeting activities.
“By the end of June, we will submit our accountability reports. At that time, during the regional budget prognosis, we will propose the 2026 Regional Budget Amendment Draft,” he said.
NTB’s mining revenue sharing for 2025, to be distributed in 2026, is estimated to reach only approximately Rp62 billion. This figure represents a significant drop from 2024, which reached Rp172 billion, marking a decrease of about Rp110 billion. The decline was triggered by reduced production volumes and the cessation of mineral concentrate exports, which directly impacted the company’s net profit, the basis for calculating the regional revenue sharing.