WITHOUT feeling 2021 is coming to an end. As we enter the fourth quarter of this year, the dynamics surrounding the global economy are increasingly interesting to observe. This is because like it or not, like it or not, no matter what happens to the global economy, will impact the Indonesian economy.
One of the events that caught the attention of the global community, of course, was related to the soaring coal prices. Referring to the ICE market in Newcastle, Australia, the price of coal on Friday October 15, 2021 reached US $ 240 / tonne. This value is down 2.04% from the previous day, which was recorded at US $ 245 / tonne. However, over the past month, the price of “black gold” has climbed more than 35%. Meanwhile, since the end of 2020, the price of coal has climbed more than 200%.
Through this review, the author attempts to analyze the impact of this phenomenon on the State budget (APBN). In addition, the author also wishes to provide policy advice so that the increase in coal prices is not onlystroll pass’.
Impact on the APBN
Indonesian dictionary (KBBI) the online version of the Ministry of Education, Culture, Research and Technology (Kemendikbud-Ristek) defines charcoal as charcoal extracted from the ground, derived from land plants, aquatic plants, etc. which have turned to stone.
We all know that coal has long been used by the people of the country. Its uses vary, for example, for cooking (charcoal briquette stoves) or as a source of electrical energy (via PLTU). Others, coal has added value through gasification to produce by-products such as urea (fertilizing raw material), podimethylether (raw material for LPG), and polypropylene (plastic raw material).
With all of these advantages, it is no surprise that the economic benefits of coal are so important to the country. “Black gold” also plays an important role in the state budget managed by the government, especially in terms of state revenue. Citing the September 2021 edition of our APBN, non-oil and gas natural resource revenue realization through August 31, 2021 has reached IDR 28.64 trillion or 98.39% of the 2021 APBN target.
The increase was contributed by the ore and coal mining sector, which generated Rs 24.39 trillion or 84.27% growth (year on year). Most of it came from royalties on minerals and coal, which, until August 2021, contributed 23.4 trillion rupees.
All of this was influenced by the high benchmark coal price (HBA) on average from January to August 2021, amounting to US $ 96.40 per tonne, up 59.92% from the same period in 2020. , which was recorded at $ 60.28 per tonne.
The surge in coal prices was triggered by the rise in natural gas prices in Europe. Expensive natural gas made the cost of producing electricity with these raw materials more expensive and they began to turn to coal. Another factor is the sharp increase in demand for coal, especially from China.
In the period from January to August 2021, the volume of coal production reached 403.32 million tons, which is 7.13% more than the same period in 2020 which had been recorded at 376.49 million tons. . Given that there are three months left in 2021, it is certain that production volumes will increase further.
The Ministry of Energy and Mineral Resources (ESDM) is targeting coal production of 625 million tonnes this year. This is stated in the decree of the Minister of Energy and Mineral Resources number 66.K / HK.02 / MEM.B / 2021.
Another impact is that state revenues from non-oil and gas natural resource revenues also have the potential to increase. Something crucial amid the low pressure on state revenue from the tax sector in this year’s APBN.
As explained at the outset, the author believes that the government should apply additional taxes amid the soaring prices of raw materials such as coal. Why is this important? Indeed, state revenue from coal has so far been included in the category of state non-tax revenue (PNBP). It is not significant for the public treasury as the types of PNBP are regulated in the form of fixed contributions, royalties and others.
Applying additional taxes is also useful in the future when government revenues are reduced again. The simple explanation is that one of the factors that caused the rise in coal prices was the energy crisis in China. At a time when the economic growth of the “Land of the Bamboo Curtain” accelerates, a significant supply of energy is needed, especially in the electricity sector.
Unexpectedly, China has a coal supply shortage for the PLTU. So there were power outages in several provinces.
Not only community activities, but the economy has been disrupted. Triggers include the trade war with Australia, although the latest news is that coal from ‘kangaroo country’ is starting to arrive in ‘bamboo curtain country’. This could be a sign that tensions in the country are starting to ease. The energy crisis could end sooner.
Another reason for the urgency of imposing additional taxes is that this phenomenon of soaring coal prices does not happen all the time. Several years ago, a similar phenomenon occurred. As soon as the price of coal collapsed, businessmen cried out for difficulties and asked the government for protection.
As for the State, because there is no additional fiscal policy, it does not receive additional income. Don’t let that happen again this time.
Other proposals are still related to taxation. Several years ago, the Ministry of Finance, then headed by Minister of Finance Bambang Brodjonegoro, followed transactions of expensive real estate assets in Jakarta. Investigate a benchmarking, buyers are not residents of Jakarta and surrounding areas, but new millionaires from the coal-producing areas of the country.
We must suspect that a similar phenomenon has reproduced this time. For this reason, the tax authorities should be very careful if there is a transaction to buy expensive real estate assets in the capital. Cooperation with the Center for Analysis and Reporting of Financial Transactions (PPATK) can be carried out to facilitate this work. If the successful buyers are located, profiling against their tax obligations can be done. If they are tax compliant, other potential taxes from them can be pursued. If they have not been registered as taxpayers (PT), this is where the government must play a role in maintaining tax justice.