The number of overlapping coal and mineral licenses in Indonesia is nerve-racking. Currently, at least 6000 licenses are overlapping. The regional government is considered bad at licensing discipline.
“It was just reported that there are around 8000 mineral and coal licenses in Indonesia. Of that number, 6000 licenses were overlapping (around 75%),” the Coordinating Minister of Economics Hatta Rajasa explained, Monday (23/5), after a coordinating meeting in Jakarta.
Hatta said that the Government realizes that the disorganized mineral and coal licensing administration has had a bad impact on the environment. For example, there was a regional head who gave a license to one company, but when he was replaced, the same license was given to another company. “Even though the previous company license has not expired,” he said.
Hatta continued, the overlapping of forest utilization licenses and mining areas usually arises in regional matters. Generally, the overlapping licenses are a result of a change in the head of the region or the large number of management licenses for mining and non-mining activities that are issued for one mining concession location.
As a result, Hatta explained, the Government has agreed to establish a coordinating team to handle this matter. This team will be under the command of the Ministry of Energy and Mineral Resources. “Licensing is also related to the Ministry of Domestic Affairs, so a coordinating team is necessary,” he stated.
Indeed, Hatta admitted that mineral and coal mining is a source of employment and state revenue. But, he was also concerned about the impact on the environment.
“Of course we want employment and state revenue for the welfare of society, but we also do not want to damage the environment,” he said.
The Government itself has issued Presidential Directive No. 10 of 2011 on Postponing New Licenses and Completion on Primary Natural Forest and Peat Land. This Presidential Directive was signed by President Susilo Bambang Yudhoyono, on 20 May. Through this Presidential Directive, the Government declared a moratorium on deforestation for two years, starting in the beginning of 2011.
The Presidential Directive lays out a map of the new license postponement plan. The Government will not grant any new licenses for the next two years. As a result, forest clearing for mining and coal activities will be suspended for the next two years.
The Cabinet Secretary, Dipo Alam, hoped that the forest and peat land regulations will be completed within that period. “The purpose is to support the reduction of emissions caused by deforestation,” he said.
This Presidential Directive should be able to complete the regulations that cover forests in Indonesia. Previously, the Minister of Forestry, Zulkifli Hasan, stated that mining activity in forest areas that were not intended to be mining areas was a criminal act. This activity, he said, violates provisions in Law No. 41 of 1999 on Forestry.
Zulkifli promised not to hesitate to bring cases to court. He pointed out, if a mining company obtains a mining license from regional government that is not in accordance with Law No. 41 of 1999 on Mining, then that company may not be able to get mining license extension. “If the license extension is given, then that action is a crime,” he said.
Therefore, the coordinating team’s examination on the 6000 problematic licenses should be observed.(*)
(*) M Vareno Tarnes / Meidi Hutagalung
Source from : Hukum Online, Tuesday, May 24, 2011
