Tax Compliance Required for Mining RKAB Approval

Jakarta, 27 November 2025 – Indonesia’s Directorate General of Taxes (DJP) together with the Ministry of Energy and Mineral Resources (ESDM) have made tax compliance a mandatory condition for approving the Work Plan and Budget (RKAB) of mineral and coal companies. The requirement obliges mining taxpayers to obtain a tax clearance before their RKAB can be approved.

DJP and ESDM have built an RKAB submission system that links directly to tax data, ensuring that companies verify all tax obligations are settled. The mechanism follows the issuance of Ministry Regulation No. 17/2025 on RKAB preparation, submission, and approval, which previously did not include a tax‑compliance clause.

Making tax compliance a prerequisite aims to improve transparency, orderliness, and accountability in the mining sector while reducing tax‑avoidance risks. Companies will need to align tax payments with their operational plans to secure timely RKAB approval.