Indonesia Fails to Collect IDR 100 Billion from PT Freeport
The presence of the PT Freeport Indonesia (FI) smelter in the Gresik Special Economic Zone (SEZ) is of course also expected to have an impact on increasing regional income. One of them is income from land and building rights acquisition fees (BPHTB).
Initially, the Gresik Regency Government predicted that the presence of PT-FI could contribute a large amount of revenue to the region. It could reach Rp 100 billion. The amount is calculated from the area of land used by PT-FI to build a smelter in the Java Integrated Industrial and Port Estate (JIIPE), Manyar District. Namely, in an area of 100 hectares. The potential revenue of Rp 100 billion has been included in the 2022 APBD draft. However, it turns out that PT-FI built the smelter with a capacity of 1.7 million tons of copper concentrate on land with a lease system. Not buying. Inevitably, the dream of additional coffers of income from BPHTB failed. In August 2021, PT Berkah Manyar Sejahtera (BKMS) as the operator of the Gresik SEZ together with PTFI signed a long-term land lease agreement. The lease term is 80 years. The initial rental period is 18 years plus 2 years. Then, it can be extended again by PT-FI for 6 periods of 10 years each.
Head of the Gresik Regency Government Budget Team, Achmad Wasil when confirmed by Jawa Pos, confirmed that the projected revenue from BPHTB from PT-FI had been included as one of the revenue posts in the 2022 APBD draft. long term lease.
However, they are still investigating further. Namely, whether the investment with the concept of land rent can be subject to taxes or levies. "The assets invested by PTFI are said to be Rp 42 trillion. So, from there it is being studied together,'' said Wasil, who also serves as the Gresik Regional Secretary. He added that the Gresik Regency Investment and One-Stop Integrated Service (DPM-PTSP) Office will also consult with the center regarding this issue. "So, we'll just have to wait for the results of the consultation," said the former head of the public works department.
In the 2022 APBD draft, the Gresik Regency Government projects the total revenue to reach Rp 3.38 trillion. Among them, local revenue (PAD) is targeted at Rp 1.18 trillion. The details include local taxes of Rp. 762 billion, regional retributions of Rp. 139 billion, the proceeds of separated regional wealth management of Rp. 13 billion, and other legitimate income of Rp. 261.8 billion.
Apart from PAD, the projected income is also obtained from central government transfers of Rp. 2.2 trillion. In detail, from the balancing fund of Rp 1.5 trillion, regional incentive funds of Rp 51.4 billion, and village funds of Rp 294.7 billion. Then, inter-regional transfer income is Rp. 337.1 billion, which comes from profit sharing of Rp. 321.6 billion, and financial assistance of Rp. 15.4 billion. Meanwhile, the projected regional expenditure in the 2022 APBD draft is set at Rp. 3.5 trillion. The details are operating expenses of Rp 2.3 trillion, capital expenditures of Rp 353.2 billion, unexpected expenditures of Rp 40.6 billion, and transfer expenditures of Rp 806.5 billion. Thus, there is a deficit of Rp 177.7 billion.
Investors Start Accumulating 'Environmentally Friendly' Stocks
The current trend is that global investors are starting to seriously think about environmental, social, and corporate governance (ESG) issues.
Likewise, the current view of investors is starting to look for companies that care about environmental issues because they are considered more prospective in the future.
PT Samuel Sekuritas Indonesia analyst, Yosua Zosokhi, said that the ESG issue has become a concern for investors, especially in the coal and palm oil sectors, so that many local and foreign fund managers have left their shares in this sector.
They think long-term 5 to 10 years is not rich retail investors this month or next week. In the future, ESG will be the main indicator because environmental factors are the main thing," said Joshua in CNBC Indonesia's Investtime program, quoted by FGM Monday (18/10/2021).
According to Joshua, environmental factors will be a long-term sentiment for investors in viewing or choosing stocks to invest in. Because the direction of industry and trade trends has been towards products that contribute to environmental improvement.
However, it is undeniable that mining and palm oil stocks are currently being hunted by investors. This is due to the skyrocketing prices of the two commodities which have a positive impact on the company.
"Now there is a shortage of energy so that coal and CPO as cheap oil are ogled by the world. Because there is a scarcity the price is high. But in the end, this is a bit cyclical, the price drops they (investors) will sell again," he said.