There is little dispute among those with direct interests in the mining sector that the old mining law, No. 11 of 1967, needed to be amended or repealed and replaced with a law that contained up-to-date provisions that were in-line with the business and mining practices of today and not yesteryear. The reality was that the previous mining law had myriad of implementing and amending regulations that meant the original provisions were no longer fit for the purpose that they were enacted for. Consequently, the government enacted Law No. 4 of 2009 to replace the 1967 law.
The new law requires a number of implementing regulations to be enacted to provide more explicit detail as to how these provisions are to operate in practice. Four of these implementing regulations have been prioritized (see ILB No. 1155 31/7/2009 and ILD No. 116 6/5/2009). One of these four prioritized implementing regulations relates to guidance and supervision with respect to the management and organization of mineral and coal mining activities.
The draft regulation is best described as a work in progress. The current target date for enactment for all four implementing regulations is September 2009. It is worth noting that the timeframe provided for in the enacting law, Law No. 4 of 2009, is the 12 January 2010.
The purpose of the draft regulation is to facilitate the implementation of Articles 71(2) and 144. In essence, this draft is designed to allow the government to oversee and manage any mining activities throughout the territory of Indonesia, and further make sure that the stated goals are accomplishment.
To that end, the Minister of Energy and Mineral Resources is obligated to organize the mining management that is performed by the provincial government, and the district / the city governments. Nevertheless, the Minister, the Governor, and the Regent / the Mayor are all responsible for the guidance and supervision of the implementation of any mining activities that are carried out by the holder of a Mining Efforts License (Izin Usaha Pertambangan / IUP), Community Mining License (Izin Pertambangan Rakyat / IPR), or Special Mining Efforts License (Izin Usaha Pertambangan Khusus / IUPK).
According to the draft, guidance includes the following points:
-
The provision of guidelines and standards for the implementation of mining management;
-
The provision of counseling, supervision, and consultation;
-
Education and training; and,
-
Planning, research, development, monitoring, and evaluation of the implementation of the organization of mining efforts in the mineral and coal sector.
Meanwhile, supervision covers 15 points, among others:
-
Technical mining (good exploration standards, operational production standards, and guidelines on calculating resources and their reserves, among others);
-
Processing mineral and coal data;
-
Mining operation safety (including risk management, emergency management, and safety management systems, among others);
-
Environmental, reclamation, and post-mining management; and,
-
Exploitation of goods, services, technology, and engineering capabilities and domestic engineering.
Each of the points above with respect to guidance and supervision are further enumerated in Articles 2 – 11 and 18 – 41.
The draft will repeal and replace the previous regulation on the same subject matter, namely: Government Regulation No. 32 of 1969, as amended by Government Regulation No. 75 of 2001.
There is little dispute among those with direct interests in the mining sector that the old mining law, No. 11 of 1967, needed to be amended or repealed and replaced with a law that contained up-to-date provisions that were in-line with the business and mining practices of today and not yesteryear. The reality was that the previous mining law had myriad of implementing and amending regulations that meant the original provisions were no longer fit for the purpose that they were enacted for. Consequently, the government enacted Law No. 4 of 2009 to replace the 1967 law.
The new law requires a number of implementing regulations to be enacted to provide more explicit detail as to how these provisions are to operate in practice. Four of these implementing regulations have been prioritized (see ILB No. 1155 31/7/2009 and ILD No. 116 6/5/2009). One of these four prioritized implementing regulations relates to guidance and supervision with respect to the management and organization of mineral and coal mining activities.
The draft regulation is best described as a work in progress. The current target date for enactment for all four implementing regulations is September 2009. It is worth noting that the timeframe provided for in the enacting law, Law No. 4 of 2009, is the 12 January 2010.
The purpose of the draft regulation is to facilitate the implementation of Articles 71(2) and 144. In essence, this draft is designed to allow the government to oversee and manage any mining activities throughout the territory of Indonesia, and further make sure that the stated goals are accomplishment.
To that end, the Minister of Energy and Mineral Resources is obligated to organize the mining management that is performed by the provincial government, and the district / the city governments. Nevertheless, the Minister, the Governor, and the Regent / the Mayor are all responsible for the guidance and supervision of the implementation of any mining activities that are carried out by the holder of a Mining Efforts License (Izin Usaha Pertambangan / IUP), Community Mining License (Izin Pertambangan Rakyat / IPR), or Special Mining Efforts License (Izin Usaha Pertambangan Khusus / IUPK).
According to the draft, guidance includes the following points:
-
The provision of guidelines and standards for the implementation of mining management;
-
The provision of counseling, supervision, and consultation;
-
Education and training; and,
-
Planning, research, development, monitoring, and evaluation of the implementation of the organization of mining efforts in the mineral and coal sector.
Meanwhile, supervision covers 15 points, among others:
-
Technical mining (good exploration standards, operational production standards, and guidelines on calculating resources and their reserves, among others);
-
Processing mineral and coal data;
-
Mining operation safety (including risk management, emergency management, and safety management systems, among others);
-
Environmental, reclamation, and post-mining management; and,
-
Exploitation of goods, services, technology, and engineering capabilities and domestic engineering.
Each of the points above with respect to guidance and supervision are further enumerated in Articles 2 – 11 and 18 – 41.
The draft will repeal and replace the previous regulation on the same subject matter, namely: Government Regulation No. 32 of 1969, as amended by Government Regulation No. 75 of 2001.
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