Several non-governmental organizations (NGOs) are urging the government to increase requirements on mining companies to better preserve and protect the environment. The proposed approach is to impose additional taxes on mining companies and placing limitations on mining companies under the amendment to Law No. 4 of 2009 on Mineral and Coal Mining (“Mining Law”).
Pius Ginting, Head of Coal Mining Research and Campaign Coordinator at WALHI, argues that an additional tax or disincentive policy should be used to compensate for environmental damage caused by mining activities. Mr. Ginting contends that as the dirtiest of fossil fuels, coal is contributing to 50% of world carbon emissions.
At present, mining companies are only required to pay royalties, taxes, and reclamation costs to the government. By imposing additional tax, business will have to think twice before investing in coal mining projects.
“The amendment to the Mining Law must incorporate provisions on additional tax and a disincentive policy,” said Mr. Ginting during a discussion organized by the Mining Advocacy Network (JATAM) in Jakarta last Friday.
In addition, another possible measure to prevent environmental destruction caused by mining activities is granting societyrights of refusal. By exercising such rights, Mr. Ginting explained that social groups may reject a proposed mining project in their local area. This is in line with the Constitutional Court Decision that requires the government to give due consideration to local societies who will be impacted on by mining activities.
Sharing Mr. Ginting’s view, JATAM’s Coordinator Hendrik Siregar said that any amendment to the Mining Law must ensure the safety of society from the negative impacts of mining activities.
“The current Mining Law neglects the safety of society,” said Mr. Siregar.
Mr. Siregar is further suggesting that the amendment to the Mining Law also introduce further limitations on the issue of mining licenses. The lack of such provisions under the current Mining Law has caused excessive exploitation in Kalimantan, especially in Samarinda and East Kalimantan. Mr. Siregar advocates that it is important for the new Mining Law to set limits on the issue of mining licenses.
“The regional governments seem to be arbitrarily issuing mining licenses,” concluded Mr. Siregar.
Several non-governmental organizations (NGOs) are urging the government to increase requirements on mining companies to better preserve and protect the environment. The proposed approach is to impose additional taxes on mining companies and placing limitations on mining companies under the amendment to Law No. 4 of 2009 on Mineral and Coal Mining (“Mining Law”).
Pius Ginting, Head of Coal Mining Research and Campaign Coordinator at WALHI, argues that an additional tax or disincentive policy should be used to compensate for environmental damage caused by mining activities. Mr. Ginting contends that as the dirtiest of fossil fuels, coal is contributing to 50% of world carbon emissions.
At present, mining companies are only required to pay royalties, taxes, and reclamation costs to the government. By imposing additional tax, business will have to think twice before investing in coal mining projects.
“The amendment to the Mining Law must incorporate provisions on additional tax and a disincentive policy,” said Mr. Ginting during a discussion organized by the Mining Advocacy Network (JATAM) in Jakarta last Friday.
In addition, another possible measure to prevent environmental destruction caused by mining activities is granting societyrights of refusal. By exercising such rights, Mr. Ginting explained that social groups may reject a proposed mining project in their local area. This is in line with the Constitutional Court Decision that requires the government to give due consideration to local societies who will be impacted on by mining activities.
Sharing Mr. Ginting’s view, JATAM’s Coordinator Hendrik Siregar said that any amendment to the Mining Law must ensure the safety of society from the negative impacts of mining activities.
“The current Mining Law neglects the safety of society,” said Mr. Siregar.
Mr. Siregar is further suggesting that the amendment to the Mining Law also introduce further limitations on the issue of mining licenses. The lack of such provisions under the current Mining Law has caused excessive exploitation in Kalimantan, especially in Samarinda and East Kalimantan. Mr. Siregar advocates that it is important for the new Mining Law to set limits on the issue of mining licenses.
“The regional governments seem to be arbitrarily issuing mining licenses,” concluded Mr. Siregar.