Mining Permit Reform Likely to Miss Target

TEMPO.CO, Jakarta - The target to reform mining permit (IUP) governance next month would be difficult to realize since some cities and provinces -- involved in the verification and validation processes -- had uneven infrastructures. In addition, cities have yet submitted IUP documents to the provincial governments.

Under Law Number 23/2014 on regional governments, provincial administrations now have the authority to issue mining permit, which was previously handled by city administrations.

“The target would be difficult to achieve. Moreover, there are many newly appointed officials at the Energy and Mineral Resources Ministry. It’s not realistic,” Budi Santoso, the working group director for mining policies at the Indonesian Mining Experts’ Association, told Bisnis on Friday, May 22, 2015.

Budi also reminded that the issue with IUP regulation was not only related to CnC and non-Cnc statuses since they could not be used as basis to curb troubled IUPs. Therefore, Budi suggested that all IUP holders must be evaluated.

“Some IUP holders might have completed the legal and financial requirements but financially limited to apply for the CnC status. If their IUPs were to be revoked, the government might face a lawsuit since the CnC status has no legal basis,” he said.

By April 2015, a total of 4,369 or 41.44 percent of mining permits had yet gained the CnC status. Of 10,543 mining permits recorded after being coordinated and supervised by the Corruption Eradication Commission, only 6,174 of them were declared as CnC.

BISNIS.COM