Jakarta-The mining industry considered not transparent in the management of natural resources in Indonesia. Though transparency is essential in the process of contract renegotiation.

Deputy Minister of Energy and Mineral Resources ( ESDM) Widjajono Partowidagdo deliver it when met at his office at the Ministry of Energy and Mineral Resources Building, Thursday (10/20/2011) in Jakarta.

Renegotiation of mining contracts, according to Widjajono, must conform the rules of the existing legislation, which is based on Government Regulation Number 45 Year 2003 on the rate of the type the state income tax is not applicable to the Ministry of Energy and Mineral Resources (Ministry of Energy).

"In principle, renegotiation of mining contracts should be based on rules. So the amount of royalties should be encouraged to fit the legal rules so well settled," he added.

According Widjajono, the difficulties mining contract renegotiation due to the lack of transparency in mining contracts and PKP2B. This condition occurred because the contract of work, management is in the hands of mining companies.

"Mining companies are obliged to deposit only the taxes and royalties (non-tax revenue)," he said.

If you want to avoid a large tax, the mining company will usually shrink the price or the sales and operating expenses.

Therefore, the Ministry of Energy and Mineral Resources Ministry of Finance proposed that strengthening tax audit capabilities for mining companies. This could involve mining engineering experts in auditing the operational costs of the mining industry.