The Minister of Energy and Mineral Resources has issued Regulation No. 33 of 2009 in order to delegate partial authority over the management of coal and mineral resource extraction to provincial governments and, in practice, Provincial Apparatus Working Units (‘Provincial SKPD’). The regulation calls this ‘deconcentration’ of the central authority to provincial governments, and it is meant to implement provisions of Articles 2 (2) and 16 (5) of Government Regulation No. 7 of 2008 on Deconcentration and Assistance Tasks.
As articulated in Article 3(3) of the 2009 regulation, the delegated provincial authorities generally include supervision over the regency and municipal management of mining businesses within their respective jurisdictions. The provincial authorities will perform their supervision based on the Coal and Mining Business Development Program, and the supervision that this Program provides is specifically set out in Article 3(3)(a) and (b).
Authorities detailed in this regulation cannot be delegated from the governor to regencies or municipalities, but rather to the Provincial SKPD. Much of the regulation specifies how the SKPD are to account for their use of authority in the sector. Article 11 determines procedures around the submission of ‘deconcentration activities managerial reports’, while Article 12 (5) outlines procedures for both financial and state-owned goods accountability reports.
Should Provincial SKPD neglect their reporting obligations, central budgetary authorities can withhold funds for a quarter of, or up to one year; meanwhile the SKPD would have to show it could properly account for its delegated authority. Funding needs are to be charged to the Deconcentration Fund in the State Budget, whilst any revenues gained by the SKPD resultant from its delegated authorities are to be handed over to the State General Treasury Account, as it is considered state revenue.
As with any central-provincial arrangement, coordination is essential. Governors in this case must coordinate with the Ministry of Energy and Mineral Resources - particularly through the Directorate General of Mineral, Coal, and Geothermal Energy - to ensure the delegated authorities are exercised effectively by the Provincial SKPD, that the sector is being well-managed generally, and that coal and mineral extraction is running smoothly in each locale throughout the country.
This regulation has been in force since 28 December 2009.
The Minister of Energy and Mineral Resources has issued Regulation No. 33 of 2009 in order to delegate partial authority over the management of coal and mineral resource extraction to provincial governments and, in practice, Provincial Apparatus Working Units (‘Provincial SKPD’). The regulation calls this ‘deconcentration’ of the central authority to provincial governments, and it is meant to implement provisions of Articles 2 (2) and 16 (5) of Government Regulation No. 7 of 2008 on Deconcentration and Assistance Tasks.
As articulated in Article 3(3) of the 2009 regulation, the delegated provincial authorities generally include supervision over the regency and municipal management of mining businesses within their respective jurisdictions. The provincial authorities will perform their supervision based on the Coal and Mining Business Development Program, and the supervision that this Program provides is specifically set out in Article 3(3)(a) and (b).
Authorities detailed in this regulation cannot be delegated from the governor to regencies or municipalities, but rather to the Provincial SKPD. Much of the regulation specifies how the SKPD are to account for their use of authority in the sector. Article 11 determines procedures around the submission of ‘deconcentration activities managerial reports’, while Article 12 (5) outlines procedures for both financial and state-owned goods accountability reports.
Should Provincial SKPD neglect their reporting obligations, central budgetary authorities can withhold funds for a quarter of, or up to one year; meanwhile the SKPD would have to show it could properly account for its delegated authority. Funding needs are to be charged to the Deconcentration Fund in the State Budget, whilst any revenues gained by the SKPD resultant from its delegated authorities are to be handed over to the State General Treasury Account, as it is considered state revenue.
As with any central-provincial arrangement, coordination is essential. Governors in this case must coordinate with the Ministry of Energy and Mineral Resources - particularly through the Directorate General of Mineral, Coal, and Geothermal Energy - to ensure the delegated authorities are exercised effectively by the Provincial SKPD, that the sector is being well-managed generally, and that coal and mineral extraction is running smoothly in each locale throughout the country.
This regulation has been in force since 28 December 2009.
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