Tax Authority Faces Minerba Challenges from Illegal Mining

The Directorate General of Taxes (DJP) said on 14 December 2025 that managing taxpayers in the mineral and coal mining sector faces several challenges. Tax Director Ihsan Priyawibawa highlighted illegal mining as the primary issue.

Illegal mining, often located in remote areas, creates a shadow economy because business reports are manipulated and taxes are evaded. DJP also confronts risks from complex corporate group structures, high affiliate transactions, and transfer‑pricing schemes that shift profit and shrink the tax base.

The tax authority plans to strengthen cooperation with law‑enforcement agencies and improve inter‑agency data sharing to close supervision gaps. These measures aim to boost minerba tax revenue and support public welfare.