Executive Summary

Key insights and market outlook

The Indonesian government has introduced a new requirement for mineral and coal mining companies to obtain tax clearance before submitting their Work Plan and Budget (RKAB) for approval starting in 2026 ¹

. This move aims to ensure companies comply with their tax obligations and follows the implementation of the Minister of Energy and Mineral Resources Regulation No. 17 of 2025 ². The regulation emphasizes the importance of tax compliance for mining companies, with the Directorate General of Taxes and the Directorate General of Mineral and Coal developing an application to facilitate the RKAB submission process.

Full Analysis

02

Deep Dive Analysis

Introduction to Tax Clearance Requirement for Minerba RKAB

Background and Regulation

The Indonesian government has taken a significant step towards ensuring tax compliance among mineral and coal mining companies by introducing a new requirement for tax clearance as a prerequisite for submitting their Work Plan and Budget (RKAB) for approval starting in 2026 ¹

. This development follows the issuance of the Minister of Energy and Mineral Resources Regulation No. 17 of 2025, which outlines the procedures for the preparation, submission, and approval of RKAB, as well as the reporting of mining business activities ².

Importance of Tax Compliance

Tax compliance is crucial for mining companies operating in Indonesia, as it directly affects their ability to secure approvals and operate legally ¹

. The new regulation emphasizes the need for companies to settle any outstanding tax debts and ensure they are up-to-date with their tax obligations before applying for RKAB approval ². This move is expected to promote a more transparent and accountable mining sector, where companies prioritize their tax responsibilities alongside their operational activities.

Implementation and Application Development

To facilitate the implementation of this new requirement, the Directorate General of Taxes and the Directorate General of Mineral and Coal are collaboratively developing an application that will streamline the RKAB submission process ²

. This application will cover aspects of business operations, technical operations, and environmental considerations, providing a comprehensive framework for mining companies to comply with the tax clearance requirement ².

Conclusion and Future Implications

The introduction of tax clearance as a mandatory requirement for RKAB approval marks a significant shift towards enhanced tax compliance in the Indonesian mining sector ¹

. As the government continues to monitor and regulate the industry, mining companies will need to adapt to these changes by prioritizing their tax obligations and ensuring transparency in their operations ². This development is expected to contribute to a more stable and regulated mining environment, ultimately benefiting both the government and the mining companies operating in Indonesia.

References