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Ada Pertanyaan? Hubungi Kami Robert Sidauruk, Kartini L Makmur
The government has finally decided to extent the reconciliation period for holders of mining business licenses (IUP) to secure clean and clear status from their local government authority. This measure is being taken to give more time to regional governments to address overlapping mining licenses, and at the same time assess mining companies that have not complied with the requirements under the mining regulatory framework.R.Sukhyar, Director General of Minerals and Coal, explained that the reconciliation period expired on 31 December 2014, but the government has decided to extend it until the end of April 2015.
The extension, however, only applies to certain regions with extensive issues related to overlapping IUP and work areas. Two such regions are Bangka Belitung and South Kalimantan where there are approximately 300 IUPs with legal issues in each province.
“Given the current situation, precautionary steps needs to be taken. Therefore we have decided to give three months additional time” said Mr. Sukhyar.
Mr. Sukhyar also explained that there are currently 4,643 IUPs that have not secured clean and clear status. Clean and clear status is mandatory for all mining companies to confirm that they have complied with all requirements under the existing mining regulatory framework such as payment of tax and royalty obligations, performing reclamation plans, and conducting environmental-friendly mining practices. So far, a total of 300 IUPs have been revoked for failure to obtain clear and clean status, with another 2,918 IUPs to be reviewed.
Lack of Transparency
Maryati Abdullah, National Coordinator for Publish What You Pay (PWYP) believes that non- compliance by mining companies is the single most important issue for realizing transparency in the mining sector. According to Ms. Abdullah, non-compliance appears in many forms such as not having a tax identification number (NPWP), late payment, or late submission of proof of production sharing with the government.
“Not to mention non-compliance with social and environment responsibilities such as performance bonds for reclamation and post-shipping and export activities, which are currently not well-supervised by the government,” said Mrs. Abdullah.
The importance of transparency in the mining sector is also being emphasized by Popy Ismalina, an energy expert from Universitas Gadjah Mada. Mrs. Ismalina contends that transparency and accountability not only contributes to boosting economic growth, but also reduces the potential for acts of corruption and conflict.
To overcome the issue of insufficient transparency, Mrs. Ismalina suggests the government make information on mining available to the public. By doing so, the government can encourage public participation in the supervision and monitoring of mining company practices.
Moreover, Indonesia’s position as the Head of Open Government Partnership (OPG) until October 2014 should provide impetus for the government to improve transparency in the mining sector.
“The current government must encourage transparent practices at every step of natural resource management,” concluded Mrs. Ismalina.
(hot/kc)
Robert Sidauruk, Kartini L Makmur
The government has finally decided to extent the reconciliation period for holders of mining business licenses (IUP) to secure clean and clear status from their local government authority. This measure is being taken to give more time to regional governments to address overlapping mining licenses, and at the same time assess mining companies that have not complied with the requirements under the mining regulatory framework.R.Sukhyar, Director General of Minerals and Coal, explained that the reconciliation period expired on 31 December 2014, but the government has decided to extend it until the end of April 2015.
The extension, however, only applies to certain regions with extensive issues related to overlapping IUP and work areas. Two such regions are Bangka Belitung and South Kalimantan where there are approximately 300 IUPs with legal issues in each province.
“Given the current situation, precautionary steps needs to be taken. Therefore we have decided to give three months additional time” said Mr. Sukhyar.
Mr. Sukhyar also explained that there are currently 4,643 IUPs that have not secured clean and clear status. Clean and clear status is mandatory for all mining companies to confirm that they have complied with all requirements under the existing mining regulatory framework such as payment of tax and royalty obligations, performing reclamation plans, and conducting environmental-friendly mining practices. So far, a total of 300 IUPs have been revoked for failure to obtain clear and clean status, with another 2,918 IUPs to be reviewed.
Lack of Transparency
Maryati Abdullah, National Coordinator for Publish What You Pay (PWYP) believes that non- compliance by mining companies is the single most important issue for realizing transparency in the mining sector. According to Ms. Abdullah, non-compliance appears in many forms such as not having a tax identification number (NPWP), late payment, or late submission of proof of production sharing with the government.
“Not to mention non-compliance with social and environment responsibilities such as performance bonds for reclamation and post-shipping and export activities, which are currently not well-supervised by the government,” said Mrs. Abdullah.
The importance of transparency in the mining sector is also being emphasized by Popy Ismalina, an energy expert from Universitas Gadjah Mada. Mrs. Ismalina contends that transparency and accountability not only contributes to boosting economic growth, but also reduces the potential for acts of corruption and conflict.
To overcome the issue of insufficient transparency, Mrs. Ismalina suggests the government make information on mining available to the public. By doing so, the government can encourage public participation in the supervision and monitoring of mining company practices.
Moreover, Indonesia’s position as the Head of Open Government Partnership (OPG) until October 2014 should provide impetus for the government to improve transparency in the mining sector.
“The current government must encourage transparent practices at every step of natural resource management,” concluded Mrs. Ismalina.
(hot/kc)