Muratara Auction Could Boost Mineral and Coal Non-Tax State Revenue

The opening of the auction for the Musi Rawas Utara (Muratara) Mining Business Licence Area (WIUP) is considered a way to optimise state revenue from the mineral and coal sector. As long as potential areas are left without official management, the potential for Non-Tax State Revenue (PNBP) and taxes risks being lost due to illegal mining activities.

Muratara has mineral resource potential, particularly gold. However, this potential has not fully provided fiscal benefits as it remains dominated by unlicensed mining activities (PETI).

“The state must not rely solely on public taxes while potential mineral resources leak through illegal activities. A transparently auctioned WIUP can become a fairer revenue instrument,” said Nurlia Meliana, Chair of KOPRI PKC PMII South Sumatra, to reporters on Friday, 12 June 2026.

In legal mining, the state obtains revenue from various instruments such as royalties, fixed fees, corporate tax, PNBP, and other obligations in accordance with regulations. Conversely, in PETI, all of this revenue potential is lost because activities are conducted outside the official system.

This condition causes the state to suffer fiscal losses. Regions also lose economic opportunities that should arise through employment, local spending, community development programmes, and supporting economic activities around the mine.

“The opening of the Muratara WIUP auction can be an entry point to transform mineral potential into official revenue sources. Through a transparent auction process, the government can select business actors capable of managing the mine professionally and fulfilling fiscal obligations,” Meliana explained.

This step is relevant amid the government’s need to strengthen revenue sources without continuously burdening the public through individual taxes. Optimising legal mineral resources can be one instrument for diversifying state revenue.

However, the narrative of state revenue must not ignore environmental and social aspects. In fact, by bringing mining areas into the legal system, the government can require permit holders to carry out reclamation, post-mining activities, occupational safety, and community empowerment.

“State revenue is important, but governance is more important. The WIUP auction must ensure the state receives revenue, the region gains benefits, and the environment remains protected,” she added.