UGM promotes fair groundwater tax calculation formulas

The Groundwater Working Group (GWWG) of the Geological Engineering Department at Universitas Gadjah Mada (UGM) is facilitating discussions between the government and business actors to address concerns regarding rising groundwater tax (PAT) rates. Industry players have expressed concerns that high tax increases could escalate operational costs.

Prof. Heru Hendrayana, Chair of GWWG UGM, emphasized that tax calculations should not focus solely on increasing regional original income (PAD). Instead, the formula must integrate hydrogeological characteristics, water resource sustainability, business investment considerations, and conservation efforts.

The forum included representatives from the Center for Groundwater and Environmental Geology of the Ministry of Energy and Mineral Resources. Discussions aim to resolve implementation issues in the field, as current complaints often stem from how the tax is applied rather than the underlying Ministry formulas.