1 State Levies on Mining Industries in Indonesia: How Can It Be Simplified? Faisal Ardhi,Inayati, Maria R.U.D. Tambunan 1. Introduction Indonesia Government has given opportunity to Indonesian corporate bodies to run business of mineral mining, based on License of Mining Business as stipulated in Law No. 4 of 2009 on Mineral and Coal Mining. The law is also expected to give legal certainty to practitioners of mineral and coal mining business. Mining sector is a potential sector for state revenue, from both tax and non-tax revenues, although mining activities will undeniably bring about externality impacts on environment. Therefore, as the owner of the natural resources, the state is lawfully entitled through levies to fair compensation for the impacts of mining activities. However, there is opposition from the business practitioners who think that there are too many kinds of levies of substantial amounts. On the other hand, a research shows that the amounts of the state levies are not significant in economic calculation, but the kinds of the levies are highly varied and imposed by many different agencies, hence creating administrative complexity and requiring simplification of state levy. 2. State Levies on Mining Industries in Indonesia The government’s authority to impose levies is stated in Government Regulation No. 9 of 2012. With enforcement the regulation, mining sector is one of the sectors that are subject to the state levies, with various consideration being taken from budgeting and regulatory perspectives. However, it is undeniable that the levies on mining industries provide Non-Tax State Revenue (PNBP) that are quite potential. The kinds of the State levies in the sector include: a. Outgoing Levy on Mineral Export The government keeps seeking to improve quality and production of domestic industries, particularly management of Mineral Resources. The law No. 4 of 2009 on Mineral and Coal Mining stipulates an obligation that the owner of Mining Business License ( IUP) and Special Mining Business License (IUPK) are required to increase added value of mineral and/or coal resources by applying mineral and coal mining, processing and purification. In addition, the government has issued a prohibition to sell raw mineral (or ores) for export through the Regulation of Minister of Energy and Mineral Resources.