< All the resources

Illicit financial flows and tax crime in mining sector in Indonesia

Indonesia ranks seventh in biggest illicit financial flows (IFF) among developing countries for year 2003-2012. While in 2014, IFF in Indonesia in 2014 is estimated reaching IDR 227.75 trillion ($20 billion). Mining sector contributes IDR 23.89 trillion ($2 billion), mainly derived from trade misinvoicing.

Recently, Publish What You Pay Indonesia conducted study on IFF and tax crime in the mining sector in Indonesia. This is an urgent issue, given the fact that Indonesia’s position among the top seven developing countries with highest IFF

Based on PWYP Indonesia’s calculation, the estimation of IFFs in Indonesia in 2014 reached IDR 227.7 trillion, or the equivalent of 11.7% of the revised state budget (APBN-P) for 2014. The mining sector contributes to more than 10% of the total IFFs which is around IDR 23.89 trillion. Around IDR 21.33 trillion comes from trade misinvoicing and IDR 2.56 trillion comes from hot money narrow. There is also a unsurprisingly low tax ratio of the mining sector in 2013, which only reached 9.4%. This low number is closely related to the rampant practices of tax evasion and tax avoidance.

Share this content:

Related Resources

RESOURCE |

Using Onodo to visualise company ownership networks

Onodo was created in 2015 by the Spanish civil societal organisation Civio. Its goal is to visualise complex networks and to support your story-telling. Because Onodo is easy to use, the target audience does not need any technical knowledge to construct a network visualization. You can use Onodo to visualize company ownership networks to better…

Read Download
RESOURCE |

Tax Justice and Extractive Transparency: Two faces of the same coin

Publish What You Pay is working on a Global Strategy which will serve to guide the movement from 2020-25. As part of this process we are reflecting on key questions facing the movement, through Think Pieces and webinars which will raise some key questions from the piece. Find out more about the PWYP Global Strategy…

Read Download
RESOURCE |

Answering the How? Ploughing back 10% of revenues from mining companies: The case of Solwezi Municipal Council

On the 14 December 2015, Solwezi Municipal Council passed a resolution to “enhance service provision to communities affected by mining activities”. This resolution followed a proposal to invest property rates collected by the council from mining companies within mining host communities. It is against this backdrop that YAD working with Publish What You Pay Zambia…

Read Download