DJP Says Few Coal Miners Pay Taxes in Indonesia

The Directorate General of Taxes (DJP) said that only a small share of coal miners pay tax despite being registered as taxpayers. The comment was made by Director of Compliance Potential and Revenue, Ihsan Priyawibawa, during the “Optimal Collaboration Towards Fair and Consistent Tax” (Kompak) seminar in Jakarta on 11 December 2025.

Ihsan noted that DJP’s main challenge is monitoring cost of goods sold, which varies across firms, and the complex group structures that raise transfer‑pricing manipulation risks. Mining companies often rely on affiliated parties for services, creating potential over‑invoicing or under‑invoicing. These factors hinder manual detection of non‑compliance.

To address this, DJP has built a sector‑specific Compliance Risk Management (CRM) system using 27 variables to flag risk indicators. The CRM’s recommendations are largely audit‑based, reflecting a still‑low compliance level in the coal sector.