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oversight and enforcement capacity on the native degree, along with the dearth of a single cadastre, left room for overlapping licences and mining in prohibited areas such as protected forests, together with unsustainable mining practices and unlawful or misreported mining, leading to a loss of government revenue.In17, mineral and coal mining corporations owed the federal government some IDR 1 trillion.To address this, the federal government has tightened rules and launched a “clean and clear” certification system underneath which mining corporations should show they meet monetary and different technical requirements. A continued push for transparency in the issuance of mining permits will help guarantee higher oversight and enforcement of permit regulation and pave the way in which for a more environment friendly fiscal regime. Most non-tax revenue is raised from oil and gas extraction through production-sharing contracts, which cut up the extracted resource between the federal government and the contractor. Non-tax income from mining mainly stems from royalties and land lease. The total government take from resource extraction is relatively excessive in the oil sector however lower in mining NRGI,15; Arnold,1 Royalty rates have lengthy been ruled by provisions in particular person mining

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