Tuesday, 26 May 2026
MEDAN | INDATANEWS.COM – The Government of North Sumatra Province remains optimistic that regional revenue from the tax on non-metallic minerals and rocks (Mineral Bukan Logam dan Batuan/MBLB) will increase significantly in the coming years. With effective suppression of illegal mining activities, the province expects potential revenue of up to IDR 5 billion annually.
Governor Bobby Nasution emphasized the importance of optimizing regional revenue streams and ensuring orderly governance of the mining sector to maximize its contribution to the local economy.Untapped Potential in the MBLB Sector
Read Also:The North Sumatra office of the Ministry of Industry, Trade, Energy, and Mineral Resources highlighted substantial untapped potential in the MBLB sector. According to Head Dedi Jaminsyah Putra Harahap, illegal mining activities have so far caused significant revenue losses for the region.
"The potential regional revenue from the opsen tax is very large. Based on field data and analysis, income from this sector could exceed IDR 5 billion per year," Dedi said on Friday (May 22, 2026).
Data from the regional financial authority shows that the 2025 MBLB tax target was set at IDR 3.09 billion, while realization reached IDR 4.43 billion or 143.26 percent. For 2026, the target has been set at IDR 3.55 billion, with IDR 369 million or 10.37 percent realized as of March 31.Crackdown on Illegal Mining as Key Strategy
Read Also:Dedi stressed that revenue growth is closely linked to efforts to curb illegal mining activities. Across North Sumatra, hundreds of unlicensed mining sites are still believed to be operating.
So far, authorities have identified and taken action against 49 illegal mining locations.
"Those operating without permits can face up to five years in prison and fines of up to IDR 100 billion under Article 158 of Law No. 3 of 2020 on Mineral and Coal Mining," Dedi stated.Enforcement measures have included warnings, calls for legalization, and shutdowns of illegal mining operations.
Read Also:Regulatory and Enforcement Challenges
Official data shows that North Sumatra currently has 43 active production permits, 19 exploration licenses, and 168 stone mining permits spread across 23 cities and regencies.
Dedi noted that addressing illegal mining requires a comprehensive approach that goes beyond enforcement, including providing economic alternatives for local communities."Regulatory changes in the mining sector often create legal grey areas and coordination challenges between institutions," he explained.
Read Also:He also pointed out that many residents remain economically dependent on illegal mining activities, making enforcement more complex. In some cases, alleged involvement of certain actors in the illegal mining economy further complicates control efforts.
Strengthening Regional Oversight
Dedi emphasized that limited supervisory resources, combined with vast and remote mining areas, remain major challenges."Going forward, we will strengthen collaboration with regencies and cities, as they also play a role in local tax collection. If illegal mines can be legalized, PAD from the MBLB tax will increase further," he said. (IDNC)
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