With the Mining Law been perched in the top 25 of the 2015 National Legislation Program (Prolegnas), its revision has become more pressing to avoid legal uncertainty. Legislative action to make the revision into a reality continues to be highly anticipated, particularly considering that the revision on Mining Law has been on the agenda since 2010.
"Unfortunately, the priorities under Prolegnas are still subject to change and as a consequence the revision to Mining Law has been suspended for years,” said Ikhwan Fahrojih, a researcher from the Center for Legal Studies on Energy and Mining.
Due to constant developments in the energy and mining sectors, a revision is needed to provide a proper legal framework to support a plethora of important business activities. In addition, several provisions of the Mining Law have been revoked by the Constitutional Court.
Supporting these concerns, Adam Muhammad, Secretary General of the Indonesia Mining Association, pinpoints several issues resulting from the absence of a proper regulatory framework. The problems included issued related to mining areas, contract extensions, state revenue provisions, processing and refining steps, mining permits, people's mining licenses (Izin Pertambangan Rakyat), and export restrictions on bauxite and nickel.
As an example, smelter development itself seems to have grey areas with the Mining Law not providing sufficient detail on this issue. Lack of support from the government also heightens the misery of mining businesses having to fulfill the smelter establishment obligation, and it is hoped that a revision to the Mining Law can progressed promptly to uncork the current blockages in mining business practices.
With the Mining Law been perched in the top 25 of the 2015 National Legislation Program (Prolegnas), its revision has become more pressing to avoid legal uncertainty. Legislative action to make the revision into a reality continues to be highly anticipated, particularly considering that the revision on Mining Law has been on the agenda since 2010.
"Unfortunately, the priorities under Prolegnas are still subject to change and as a consequence the revision to Mining Law has been suspended for years,” said Ikhwan Fahrojih, a researcher from the Center for Legal Studies on Energy and Mining.
Due to constant developments in the energy and mining sectors, a revision is needed to provide a proper legal framework to support a plethora of important business activities. In addition, several provisions of the Mining Law have been revoked by the Constitutional Court.
Supporting these concerns, Adam Muhammad, Secretary General of the Indonesia Mining Association, pinpoints several issues resulting from the absence of a proper regulatory framework. The problems included issued related to mining areas, contract extensions, state revenue provisions, processing and refining steps, mining permits, people's mining licenses (Izin Pertambangan Rakyat), and export restrictions on bauxite and nickel.
As an example, smelter development itself seems to have grey areas with the Mining Law not providing sufficient detail on this issue. Lack of support from the government also heightens the misery of mining businesses having to fulfill the smelter establishment obligation, and it is hoped that a revision to the Mining Law can progressed promptly to uncork the current blockages in mining business practices.