In a significant move to curb illegal transactions involving tin and nickel, the Indonesian Government has introduced the latest development of the Ministry and Agency Mineral and Coal Information System (Sistem Informasi Mineral dan Batu Bara antara Kementerian dan Lembaga – “SIMBARA”). This updated system now includes oversight for tin and nickel commodities, expanding beyond its initial implementation, which focused solely on the coal sector since its launch in 2022.

During a recent interview, the Minister of Energy and Mineral Resources stated that this latest enhancement of SIMBARA demonstrates the government’s unwavering commitment to improving the management of natural resources in Indonesia. He highlighted that SIMBARA is designed not just to streamline but to revolutionize the management process of these resources, integrating key principles such as efficiency, transparency, and systematic order.

The SIMBARA application is used as a monitoring application for Non-Tax State Revenue (PNBP) and the trade of Minerals and Coal. This application is also part of a series of processes for the governance of Minerals and Coal from upstream to downstream, including the fulfilment of payment obligations and the clearance process at the port. SIMBARA contains an integrated monitoring ecosystem for all management and supervision applications and serves as a data hub for minerals and coal.

SIMBARA integrates processes from upstream activities like planning and exploration to downstream processes including mining, processing, and refining, the system ensures comprehensive oversight, including from the single identity of taxpayers and payers, mining permit processes, sales planning, sales verification, PNBP payments, as well as export and transportation or shipping, and foreign exchange earnings from exports. This holistic approach aims to enhance the overall management and regulatory framework governing these critical resources.

In addition to the core functionalities of SIMBARA, the Ministry of Energy and Mineral Resources has developed a complementary digital platform called the Minerba Online Monitoring System (“MOMS”). This system, which integrates seamlessly with SIMBARA, provides real-time monitoring and management capabilities for coal, tin, and nickel commodities. The MOMS is designed to be scalable and will be progressively expanded to include additional mineral commodities in the future.

The implementation of SIMBARA, along with the MOMS, is anticipated to significantly boost state revenue through better regulatory oversight and enhanced compliance. The government’s strategic approach also aims to improve inter-agency coordination and ensure that various Ministries and agencies are effectively involved in resource management.

Overall, the introduction of the enhanced SIMBARA system reflects the government’s dedication to modernizing natural resource management in Indonesia, setting a precedent for improved governance and sustainable resource utilization.

If you, a prospective client, have further inquiries about the topic discussed above, Schinder Law Firm is one of many corporate law firms in Indonesia that has handled numerous similar matters, with many experienced and professional corporate and civil lawyers in its arsenal, making it one of the top consulting firms in Indonesia. Feel free to contact us at info@schinderlawfirm.com for further consultation.

Author:
Dewi Susanti