Indonesia's Directorate General of Taxes has agreed with the Directorate General of Mineral and Coal to make tax clearance a mandatory requirement for mining companies submitting their annual Work Plan and Budget (RKAB), local media reported.

Bimo Wijayanto, Director General of Taxes, announced that starting next year, mining companies will need to provide proof of tax payment as part of their RKAB submission.

"Please prepare yourselves, starting from the next year's RKAB extension, tax clearance will be required," Wijayanto said on December 1, 2025.

The move followed a socialization of the Work Plan and Budget (RKAB) and compliance with mining business entities' obligations to holders of Mineral and Coal Mining Business Permits (IUP) in Jakarta on November 26. It is aimed at ensuring tax compliance and strengthening the country's fiscal management of the mining sector.

RKAB is an essential document that mining companies must submit annually, detailing aspects of their operations, technical plans, and environmental management. Failure to submit it will result in a ban on mining activities, as stipulated by regulations.

In a joint effort, the Directorate General of Taxes and the Directorate General of Mineral and Coal are collaborating to integrate mining-related tax data with the tax authority's Coretax system, as well as the Minerba-One platform, operated by the Ministry of Energy and Mineral Resources. This integration aims to ensure comprehensive data sharing to optimize national revenue collection.

The collaboration highlights a broader push to enhance the management of Indonesia's natural resources, with mining companies contributing significantly to the nation's economic development.

"The message from President Prabowo Subianto refers to the importance of mutual cooperation based on Article 33 of the 1945 Constitution, which underpins Indonesia's economic system focused on justice," Wijayanto emphasized.

The number of taxpayers in the mining sector has steadily increased by an average of 3% annually over the past five years, with the number of registered mining taxpayers rising from 6,321 in 2021 to 7,128 in 2025, according to Wijayanto.

Tax revenue from the mineral sector has seen a dramatic surge, with revenues from metal minerals increasing more than tenfold, from IDR 4 trillion in 2016 to IDR 45 trillion in 2024. Meanwhile, tax revenues from coal mining have fluctuated with global commodity prices.

"We cannot stand alone without the contribution of mining sector players, who account for 20-25% of national tax revenue," Wijayanto added.