The Ministry of Finance is collaborating with the Ministry of Energy and Mineral Resources through the development of a work plan and budget submission system that is directly linked to tax data. This collaboration is expected to ensure that every taxpayer in the mineral and coal sector must first ensure that their tax obligations have been fulfilled before their work plans and budgets are approved. According to the Directorate General of Taxes, this step is a joint commitment to create a more transparent, orderly, and accountable mineral and coal industry. Regarding these requirements, the Directorate General of Taxes, together with the Ministry of Energy and Mineral Resources, has disseminated information on the requirements for the approval of Work Plans and Budget Estimates, one of which is tax compliance for taxpayers in the mineral and coal industry sector, and ensuring that their business activities are in line with compliance.
The addition of tax compliance requirements in the approval of work plans and cost budgets is a proposal from the Ministry of Finance. The Ministry of Energy and Mineral Resources recently issued Minister of Energy and Mineral Resources Regulation No. 17 of 2025 concerning procedures for the preparation, submission, and approval of work plans and cost budgets as well as procedures for reporting on the implementation of mineral and coal mining activities. As we know, work plans and cost budgets are mandatory annual documents for the mining industry in Indonesia to plan operational, technical, and environmental activities for the next year, including costs.
The work plan and budget must be approved by the Ministry of Energy and Mineral Resources to ensure the legality of mining operations and tax compliance, which can be proven by a fiscal certificate that can be downloaded by mineral and coal mining companies. The work plan and budget must meet five requirements, including: administrative data, proof of payment to the state treasury, exploration activity realization and plans, proof of placement of reclamation guarantees for the exploration phase, and the appointment of a mining engineer.
Although mining companies’ tax compliance is still being reviewed by the Ministry of Energy and Mineral Resources as a condition for approving work plans and budgets, it is hoped that this will resolve the tax issues of mineral and coal companies.
By Olina Rizki Arizal – Partner
TBrights is a tax consultant in Indonesia that is currently an Integrated Business Service in Indonesia that can provide comprehensive tax and business services
Referance:
1. Minister of Energy and Mineral Resources Regulation No. 17 of 2025 concerning procedures for the preparation, submission, and approval of work plans and cost budgets as well as procedures for reporting on the implementation of mineral and coal mining activities
