The Ministry of Energy and Mineral Resources (ESDM) and the Ministry of Finance have not yet reached an agreement regarding the scheme for collecting and distributing the Coal Compensation Fund because it relates to the imposition of Value Added Tax (VAT). Minister of Energy and Mineral Resources Arifin Tasrif admitted that his party had discussed this matter with the Minister of Finance Sri Mulyani, but had not yet reached an agreement. "It's still necessary, we need an agreement," Arifin said when met at the Jakarta Presidential Palace Complex, Monday. Arifin explained that the scheme for collecting and distributing coal funds was carried out to mutually compensate mining companies.
The funds are collected from coal players who cannot meet the domestic market obligation (DMO). Then this compensation fund is given to coal companies that meet the DMO. This scheme aims to cover the difference between the selling price of domestic coal and the international/market price. However, the levy scheme and the distribution of compensation funds are subject to VAT. In fact, according to Arifin, VAT has already been imposed on buying and selling transactions. "If the withdrawal of the channel is not imposed (VAT), it is compensating for what carries the DMO. So, the compensation is withdrawn, then distributed to those who fulfill (DMO). He should have been taxed first," said Arifin. The coal fee collection scheme will initially be collected by the Public Service Agency (BLU). But then BLU was replaced with Government Agency Partners (MIP) because the compensation funds were not related to Non-Tax State Revenues (PNBP).
