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Nothing shared funds for the results of the Tax Agency to the area as stipulated in the legislation, has hurt some local governments, especially for the area contained mining area. Because, the impact of environmental degradation and social order are not commensurate with the revenues received by the region. Thus, at least that is expressed by the experts and witnesses presented by the applicant in case number 44/PUU-IX/2011, Wednesday (28 / 9) at the Plenary Room.

Some facts can be seen directly in some areas. One of them happens to the district of Timika, Papua. According to Head of Geology and Mineral of Timika Government Septianus Soulmalena, there has been a fiscal imbalance and the burden on local budgets.

He added that it had conducted research with the involvement of academics to examine the level of environmental pollution in some rivers in Timika. The result, he said, the level of heavy metal concentrations have exceeded the threshold. "It’s polluted and threatened the sustainability of the existing river biota," he said.

"Over the last ten years the landscape changes quite significantly," continued Septianus. "It was especially in coastal areas and beaches." This happened, according to him, due to the death of mangroves in the surrounding area.

Adverse impacts on natural compounded by the declining quality of life of the community surrounding the mining area. As a result, the burden of social costs increased as well.

Other witnesses expressed similar statement, namely the Head of Department of Revenue, Finance and Asset Management Government of West Sumbawa Regency, West Nusa Tenggara Musyafirin. In his statement, he revealed that the presence of mining activities in the region has resulted in direct and indirect impacts.

According Musyafirin, development funds obtained from its Corporate Social Responsibility (CSR) does not significantly impact on development in West Sumbawa. "Not a tangible contribution towards efforts to accelerate the development and improvement of public welfare," he explained.

While there, he added, the CSR program is not focused on areas directly affected, but to the provincial or national community. "It’s not focused on the local community," he said.

According to him, it did not provide the balance that reflects the principle of proportional, democratic, and fair. If calculated, the inequality of income derived from mining activities with the revenues received by the region is enormous. “Must wait for a new 147 year equals one year the exploitation of natural wealth," said Musyafirin who also served as Acting Secretary of the Regional Government of West Sumbawa was trying to illustrate.

 

Need to be reformulated

While the Petitioner presented expert at the trial at that time, Machfud Sidik, explained that there needs reformulation of taxation in Indonesia, particularly related to financial balance between central and local governments. According to him, the formulation of the current tax raises a lot of distortion and raises the efforts of inappropriate by rogue elements of government. "The structure of our taxation is less favorable," he explained.

Although, he notes, that the level of satisfaction is in terms of fiscal balance difficult to achieve. "It is impossible to give satisfaction to all people," he added.

After hearing all witnesses and expert testimony presented by the applicant, the hearing was closed by Moh. Mahfud MD who then acting as Chairman of the Plenary Court. For the next session, it will be held on Tuesday (4 / 10) afternoon. Its plan, the Government will present three experts. (Dodi / mh/Yazid.tr)

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