Friday, March 9, 2012

[KU-067/2012] Clean And Clear Mining Permits To Be Completed End Of 2012

JAKARTA: The government plans to announce 700 mining permits with the clean and clear status without any overlapping with other permit holders in the near future so all of the permits are expected to be complete at the end of 2012.

Since the publication of Mining Act, the Ministry of Energy and Mining Directorate General of Mineral Resources (ESDM) until mid-2011 there were 9,662 mining permits (IUP) issued by the local governments.
Of the total IUP, only 3,778 permits have clean and clear status. Clean and clear status shows that the mining area has a complete document and there is no overlapping on this area.

The remaining 5,884 permits are problematic. In fact, unclear permit is predicted to be significant since the licensing authority is held by the local government.

The cause of the problematic mining permit is on the regional head or regent who is neglectful to manage this matter. In fact, one source of Bisnis said that in one area of East Kalimantan to take power of attorney over the adjustment of mining permit status into exploration permit needs about IDR250 million, while the 'cost' for production permit of between IDR500 million and IDR1 billion.

“It is caused by the unprofessional regent who frankly given the permits to more than one party," said Thamrin Sihite, Director General of Mining and Mineral Resources Ministry last weekend.

In order to solve the problematic issue of mining permits, the Directorate General of Mineral and Coal has been holding the University of Indonesia (UI) to resolve the issue.

The appointment UI to solve the problem has caused an internal resistance since the verification which is actually conducted by the Directorate of Commercial Directorate of Coal and Mineral has to be taken over by an Independent Team from UI.

The completion of the mining permit verification, as Thamrin said, is expected to boost state revenues from the mining sector.

"With reconciliation, the mining permit will be more orderly. In addition, the permit holder who usually pays a dividend to the regional government, now they will be expected to pay to the central government. The government has also conducted socialization to the local government so that the payment of non-tax state revenues can be deposited to the central. Then, it will be distributed to the local government, "he said.

Besides completing the reconciliation of mining permit, the government also continues to fix the mining sector. President Susilo Bambang Yudhoyono has even formed an evaluation team of the adjustment of working contract (KK) and the agreement works of the coal mining business (PKP2B) in accordance with Presidential Decree No.3/2012.

The team is composed of the Coordinating Minister for Economic Affairs Hatta Rajasa as the chairman, the Minister of ESDM Jero Wacik as Chief Executive and Director General of Mineral and Coal Thamrin Sihite as the secretary.

Meanwhile, the evaluation team members are the Minister of Finance, Minister of Home Affairs, Minister of Justice and Human Rights, Minister of Industry, Minister of Trade, Minister of Forestry, Minister of SOEs, the Cabinet Secretary, the Attorney General, Chief of Financial Development Supervisory Board (BPKP), Head of National Land Agency (BPN), and the Head of Investment Coordinating Board (BKPM).  (T03/msw)

Source : Bisnis Indonesia, 17.01.12.

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