The Surface Water Tax (PAP) dispute between PT AI and the South Kalimantan Provincial Government serves as a critical highlight regarding the interpretation of Surface Water Acquisition Value (NPAP) in the extractive industry. The core conflict centered on the Regional Tax Assessment (SKPD) issued by the Regional Revenue Agency based on Governor's Decree No. 188.44/01016/KUM/2022, where PT AI filed an appeal due to perceived discrepancies between actual water utilization volume and the tariffs imposed on the mining sector.
The Respondent (Revenue Agency) maintained its adjustment, arguing that the NPAP determination utilized valid discretion through regional regulations and water meter data. Conversely, PT AI, as the Petitioner, countered this by asserting that the water used originated from the mine drainage system (PIT), which is characteristically different from natural surface water (rivers), and thus should be subject to lower tariffs based on resource utilization fairness principles.
The Board of Judges, in its legal opinion, conducted an in-depth examination of administrative and technical evidence. The resolution of this case saw the Judges identifying administrative errors in the accumulation of water volume calculations for the relevant tax period and identifying certain water usage for environmental purposes that should have received special treatment. The Board of Judges decided to partially grant PT AI's petition, correcting the tax due to IDR 59,487.00.
Analysis of this decision shows that the accuracy of technical data (water volume) and the classification of water use are key to winning PAP disputes. The implications of this ruling provide a precedent for other mining companies to be more diligent in separating operational water volume from water used for social/environmental purposes to avoid disproportionate tax burdens. In conclusion, legal certainty in local taxes requires synchronization between governor regulations and technical conditions in the field.
A Comprehensive Analysis and the Tax Court Decision on This Dispute Are Available Here
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