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UU Minerba; Controversial Aspects Embodied in Mining Law

13 May 2020 19:58 WIB

TEMPO.CO, Jakarta - The majority of the House of Representatives (DPR) on Tuesday's plenary meeting went in favor of the government after they officially passed the coal and mineral Bill (UU Minerba) into a Law. This comes as a somewhat controversial move as the revised law is considered by many to harbor a plethora of troubling regulations regarding the coal and mineral industry. 

Coordinator of the Mining Advocacy Network, Merah Johansyah, immediately responded to the decision and asserted that his group is considering to take legal or non-legal actions against the decision made by the DPR. 

“The government consciously granted bailout to protect the security of corporate elites instead of protecting the environment or its people,” said Merah Johansyah on Tuesday, May 12. 

The following are the controversial aspects contained in the UU Minerba and the crucial regulations that were erased in the new version of the law:

1. Article 1 (13a)

The new clause entitled rock mining permit (SIPB) states that permits are granted to conduct certain rock mining activities for specific uses. This clause is feared to open the possibility for more interest money or “rente” in local terms. 

2. Article 1 (28a)

This clause oversees mining jurisdictions as the land space, ocean space, and the earth within the spaces as a single unit of the Indonesian archipelago. 

This new definition mentioned in the Law poses a threat toward people’s living space as every mining activity from its investigation up to the mining is within the community’s living space. 

3. Article 4 (2)

This clause oversees that the control over coal and minerals are held by the central government. The old clause gives authority for regional administrations, which is annulled in the new clause as everything is now being centralized. This goes against the spirit of regional autonomy.

4. Article 22

Article 22 (a) and (b) on the criteria of determining the people’s mining area (WPR) has opened more room for river miners up to a maximum of 100-hectares from the previous 25-hectares. 

5. Article 42 dan Article 42A

These two clauses are believed to further ease mining businesses to control a certain land for a prolonged period for exploration up to 8 years, which is a contrast to the previous law that limits exploration to 2 years. The new clause stipulates that it can be extended for one year in each period of extension that opens the chance for land banking.

6. The Emitting of Article 83 (2) and (4) 

The previous UU Minerba limits the special mining business permit area (WIUPK) for the production of metal up to 25,000 hectares. Article 83 (4) had even limited the WIUPK for coal mining up to 15,000 hectares. The newly passed law does not oversee these limitations anymore. 

7. Article 162 and 164

These two newly passed articles open the chance to criminalize rejections against mining corporations as Article 162 states that “Every individual that hamper the activities of mining from IUP, IUPK, IPR, and SIPB permit holders that comply with regulations mentioned in Article 136 (2) can be subjected to one-year imprisonment or Rp100,000,000 fine.” 

Meanwhile, Article 164 oversees additional sanctions for the aforementioned individuals overseen in Article 162. The sanctions range from confiscation of items used for the act of legal violation, the profit obtained by conducting the act of violations, and/or paying the fees that arise due to the violations. 

8. Article 165 Gets Erased 

The Article used to oversee criminal charges for corporations that obtained mining permits (IUP), people’s mining permits (IPR), and special mining permits (IUPK), which criminally sanctions corporations that violate 2 years imprisonment. 

Without this Article, corruption in the field of oil and coal mining is feared to soar. 

9. Article 169A

This Article oversees work contract extensions (KK) and coal contracts of work (PKP2B) can be obtained without going through an auction. KK and PKP2B permit holders are guarantees to automatic extensions up to 20 years without having to extend their areas. 

The previous law states that the areas need to be returned to the government every time a contract ends and is auctioned again to other corporations. 

10. Article 169B (5) 

KK and PKP2B holders are permitted to submit a new special mining permit on areas that are outside of their special mining permit areas, which gives more privilege for IUPK holders to obtain additional concessions. 

BUDIARTI UTAMI PUTRI



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