- The Draft Regulation on the Sixth Amendment to Regulation of the Government No. 23 of 2010 on the Implementation of Mineral and Coal-Mining Activities (“RPP”) has entered its final stages of deliberation. However, it was recently pointed out that a number of provisions which are set out under the RPP are in contradiction with Law No. 4 of 2009 on Mineral and Coal Mining (“Mining Law”).
- Ahmad Redi, a lecturer in mining law at Tarumanegara University, recently addressed a number of RPP-related issues, specifically: 1) The new licensing mechanism allows mining businesses to extend their Contracts for Works (“KK”) and Coal-Mining Business Working Agreements (PKP2B), as well as to transform them into Special Mining Licenses (IUPK) without having to undergo any initial tender process. However, this is in spite of the fact that automatic contract renewals are impossible under the Mining Law; and 2) The new RPP authorizes coal-mining businesses to utilize production areas which exceed 15,000 hectares in size.
- Addressing these matters, Hendra Sinadia, Executive Director of the Indonesian Coal Mining Association (APBI), explained that it was plausible that the RPP was formulated in order to accommodate first-generation mining contracts which will soon expire.
- For more on this story, see Hukumonline: “Ada Regulasi ‘Sesat’ dalam Revisi PP Pertambangan?”
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