Supreme Audit Agency Urges Government To Issue Mining Moratorium

Denpasar, Bali, Feb 18 (Antara) - The Indonesian Supreme Audit Agency has urged the government to issue a moratorium on mining permits to save the environment from incurring further damage. "This moratorium is important because the mining industry significantly contributed to damaging the environment," stated the agency`s member, Masykur Ali Musa, here on Tuesday. Besides inflicting environmental damage, the mining sector`s contribution to the national economic growth is not too significant. In fact, over the years, mining tax arrears have continuously piled up. In 2011, mining tax arrears totaled about Rp328 billion, and in 2012, it rose to Rp486 billion, while in 2013, the growing tax arrears of the mining sector increased to Rp628 billion. "Every year, there is an increasing trend of arrears. I am very sure that this year`s tax arrears of 20 large companies and 60 small companies in the mining sector will continue to increase," noted Ali. Ali claimed that 10 large companies in the mining sector are causing potential losses amounting to Rp30 trillion per year to the state in form of both taxes and environmental degradation. "If the condition continues this way, the impact of our poor environmental governance can be more fatal," Ali pointed out. Besides mining, Ali also urged the government to stop issuing forest concessions for industry and tourism. "Currently, Indonesia is in a state of environmental emergency," Ali added. The current deforestation in Indonesia has reached 1.3 million hectares per year, productive land conversion has reached 120 thousand hectares per year, and only 13 percent of the mangrove forests are remaining in Indonesia as a result of land reclamation. "Based on facts, I have urged the government to stop issuing forest concessions in the interest of the industry," stated Ali.