Indonesia Tax Authority Flags High Compliance Risk in Mining

Indonesia's Directorate General of Taxes (DGT) said that taxpayers in the mineral and coal mining sector face a relatively high compliance risk. The comment was made by Director of Compliance Potential and Revenue, Ihsan Priyawibawa, during the KomPak event in Jakarta on 11 December 2025.

The DGT uses a Compliance Risk Management (CRM) system to classify taxpayers as high, medium or low risk and to recommend treatment actions. For the mining sector, the dominant recommendation is audit, after identifying four non‑compliance types: inaccurate sales reporting, false ore quality data, transfer‑pricing manipulation, and cross‑border tax avoidance.

In response, the DGT conducts follow‑up actions comprising 76% audits, 13% supervision, 9% education, and 2% enforcement. The high share of audits underscores the need for mining companies to ensure accurate tax reporting.