Amid rejection from various organizations and parties, Indonesia' parliament passes the revision of mining law at the plenary meeting today (05/12) - Photo: Special

JAKARTA (TheInsiderStories) – Amid rejection from various organizations and parties, Indonesia’ parliament passes the revision of mining law at the plenary meeting today (05/12). The revision law Number 4 of 2009 was completed in three months since the government sent thr draft to House of Representatives.

Coordinator of the mining advocacy network (JATAM), Merah Johansyah rated, the new bill only accommodate the interests of coal players without calculating the impact on the environment and the community in the mining area. He judged, the law contained many problematic articles.

He highlighted the matter of guarantee on the extension of Contract of Work or Coal Mining Concession Work Agreement run without auction. This is regulated in Article 169A.

“The automatic extension for the permit holders without reduction in area and auction is a facility that has been awaited by six giant coal companies,” he said on Monday.

Some articles were amended in the mining law includes:

a. Settlement of problems between sectors, namely through the demarcation of processing and refining licensing authority between energy and mineral resources (EMR) and industry ministry and the guarantee of space utilization in areas that have been given to permit holders

b. Mining Legal Area Conception, through this regulation, mining investigation and research activities can be carried out in all Indonesian legal areas

c. Strengthening of Added Value Enhancement Policies, namely through granting licensing time incentives for Mining Business Licenses/Special Mining Business Permits integrated with processing and/or refining facilities

d. Encourage Exploration Activities for mineral and coal deposit discovery through the assignment of investigations and research to state research institutes, state-ownwed enterprises, regional firm, or Private Business Entities and by imposing obligations on the provision of Reserve Resilience Funds to business actors

e. Special Regulations on Rock Concession Permit, presenting a new Permit, namely Rock Mining Permit whose licensing mechanism is easier and simpler

f. Reclamation and Post-mining, namely through the regulation of criminal sanctions for permit holders who do not conduct reclamation and post-mining activities

g. Licensing Period for Integrated permit, Licensing Integrated with Metal Processing and/or Refining Facilities or Coal Development and/or Utilization Activities is given for a period of 30 years and is given an extension for 10 years for each extension after meeting requirements

h. Accommodating the Constitutional Court’ Decision, the Establishment of a Mining Area is conducted after being determined by the Provincial Government and the elimination of the minimum area size in the Exploration Mining Business Permit Area

i. Mineral and Coal Status with Certain Conditions, regulation of mineral or coal status obtained from mining without permission is determined as Confiscated Goods and/or state-owned Property

j. Strengthening the Role of SOEs, including the regulation that ex-concession permit and Special Mining Permit Areas can be stipulated as Special Mining Permit Areas whose bids are prioritized to SOEs, and SOEs get priority in purchasing divested shares

k. Continuation of Contract of Work/Coal Mining Concession Work Agreement to Special Mining Permit as Continuation of Operation by considering efforts to increase state revenue

l. People’ Mining Permit, adding the maximum area of ​​the People’s Mining Area, which was originally 25 hectares to 100 hectares and adding the type of regional income in the form of community mining fees

m. The availability of the National Minerals and Coal Management Plan, as a guideline for the sustainable management of minerals and coal

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