Two heavy-duty vehicles unload coal in Tanjung Priok port, North Jakarta, on September 17, 2013. (Antara Photo/Zabur Karuru)

New System Helps Gov’t Keep Close Eye on Mineral, Coal Producers

BY :HERMAN

MARCH 08, 2022

Jakarta. The government on Tuesday launched an integrated information system called Simbara, which is set to help them keep a close eye on coal and mineral producers.

The Simbara app records all coal and minerals management processes, starting from the upstream to downstream. This includes the mine planning, refining, sales of the mineral and coal commodities, fulfillment of obligation to pay state revenues, and port clearance, according to Energy and Mineral Resources Minister Arifin Tasrif.

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“Simbara is here to support the synergy of business processes and data flows between ministries and institutions. This system will make the single submission system for the shipping process to be convenient, faster, and accountable,” Arifin said on Tuesday.

He added that the Simbara would enable a more optimal monitoring of business entities’ compliance with the domestic market obligations (DMO). 

The system will also help the government control illegal mineral and coal trade by businesses, be it as the producer or intermediary, which can result in the leakage of state revenues.

According to Finance Minister Sri Mulyani, mineral and coal prices are soaring, and so is the sector’s contribution to the state revenue. 

Last year, the state revenue from the mineral and coal sector reached Rp 124.4 trillion or about $8.6 billion. But the higher the prices for coal and minerals are, the larger the threat to governance is. 

“The incentives for violating good governance in the form of smuggling, under invoicing, tax evasion become enormous,” Sri Mulyani told the Simbara app launch on Tuesday. 

She added that the integration of business processes and data between ministries or institutions should have been effortless in today’s era of technology. Such integration has also become a must.

“It has become key to improving governance, strengthening supervision, and enhancing services for businesses,” Sri Mulyani said, while adding that businesses could gain assurance from the ministries and institutions, with the information in sync.

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