In order to optimize Non-Tax State Revenue and improve the duties and functions implementation of the Ministry of Energy and Mineral Resources, government made adjustments to Non-Tax State Revenue types and rates that apply to Ministry of Energy and Mineral Resources. These provisions are regulated in Government Regulation Number 26 of 2022 (PP 26/2022) concerning Types and Rates for Types of Non-Tax State Revenue that are applicable in Ministry of Energy and Mineral Resources.
This regulation consists of 10 articles and 1 attachment and will take effect 30 days from August 15, 2022. In general, if compared with the previous provisions, Government Regulation Number 81 of 2019 (PP 81/2019), amendments are in each article's arrangement of rule points.
In the latest regulation, the origin of Non-Tax State Revenue type is regulated based on the agency or ministry/institution, while PP 26/2022 regulates Non-Tax State Revenue type based on the source of revenue. The following table compares the two:
| PP 81/2019 | PP 26/2022 |
Types of Non-Tax State Revenue applicable in Ministry of Energy and Mineral Resources originate from
| Types of Non-Tax State Revenues that are applicable in Ministry of Energy and Mineral Resources come from revenues from:
|
Types and rates of Non-Tax State Revenue types are summarized in PP 26/2022 appendix which is an integral part of the regulation. In addition, several other types of Non-Tax State Revenue are regulated in Article 2 paragraph (1) of PP 26/2022.
Several amendments in the appendix include:
- Removing People's Mining Permits (Izin Pertambangan Rakyat or IPR) in connection with receipts from fixed fees for mineral and coal mining businesses in Non-Tax State Revenue type;
- Changing the range of calorie levels and details of Non-Tax State Revenue types as well as types rate in the form of Coal, both open pit and underground, in connection with receipts from production/royalty fees; and
- Adding Non-Tax State Revenue types in the form of Nickel Ore with Ni content < 1,570 as raw material for the battery-based electric motor vehicle industry in connection with receipts from production fees/metallic minerals royalty.
IMPOSITION OF ZERO PERCENT OR ZERO RUPIAH RATES ON ESDM SECTOR
Another new provision that is highlighted is the imposition of a royalty rate of 0% (zero percent) provision to coal downstream business license holders. Article 3 paragraph (1) PP 26/2022 stipulates that:
- Production Operation Mining Business License Holder,
- Special Mining Business for Production Operation License, and
- Special Mining Business as Continuation of Contract/Agreement Operation License.
which increases the Added Value of coal may be given certain treatment in the form of imposition 0% royalty rate on the coal volume by considering energy independence and fulfillment of industrial raw material needs.
Provisions regarding activities to increase the added value of coal, amount, requirements, and procedures for imposing royalties are regulated in a ministerial regulation that administers energy and mineral resources sector after obtaining approval from Minister of Finance.
Furthermore, the imposition 0% rate or Rp0.00 can be applied to the utilization of natural resources and energy and mineral resources services. Provisions regarding the amount, requirements, and procedures for imposing rate are regulated in a ministerial regulation that administers energy and mineral resources sector after obtaining approval from the Minister of Finance.
PRIOR PROVISIONS
The imposition of Rp0.00 has been regulated in Article 7 and Article 10 of PP 81/2019. These rates are subject to the following conditions:
- Non-Tax State Revenue type at the Geological Agency in the form of expert assistance services may be subject to Rp0.00 to Central and Local Government agencies (Article 7 paragraph (1) PP 81/2019)
- Non-Tax State Revenue type at the Geological Agency in the form of geological museum services, Rp0.00 may be imposed for special visitors. (Article 7 paragraph (3) PP 81/2019)
- Non-Tax State Revenue type at the Human Resources Development Agency of Energy and Mineral Resources in the form of educational services at Universities within the Ministry of Energy and Mineral Resources that provides in energy and mineral vocational education may be subject to Rp0.00 (zero rupiah) to students with certain criteria. (Article 10 paragraph (1) PP 81/2019)
On the other hand, government has regulated the type of Non-Tax State Revenue in the form of royalties in Article 13 paragraph (1) letters b and c and Article 13 paragraph (2) PP 81/2019. However, the royalties referred to intellectual property rights license royalties originating from research and development results and book sales royalties in the energy and mineral resources sector. Non-Tax State Revenue royalty rate is determined in accordance with the nominal value stated in the cooperation contract.
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