Jakarta – Anti-Mining Mafia Coalition urged the governors of 31 Indonesian provinces to curb troubled mining permits (IUP) that hasn’t been yet modified as Clean and Clear. The C&C status is mandated in 2015 Ministerial Decree stipulating evaluation procedures of mining and coal permits as recommended by the Corruption Eradication Commission through coordination and supervision program or more known as Korsup Minerba.
Up to this day, as many as 4.000 non-C&C permits haven’t been solved across Indonesia. While, 6.3 million hectare mining permits are still located in conservation area (1.37 hectare) and protected forest (4.93 million hectare). This contradicts 1999 Forestry Law that regulates conversation and protected forests are closed to industrial business.
Currently, there are several companies who are being in arrears for not paying non-tax state revenue to the government, which worth of Rp. 25 trillion. Moreover, 74 per cent of IUP holders did not pay liability guarantee of reclamation and post-mining; and as many as 1087 NPWP of IUP holders (taxation identification number) are unidentifiable.
Recommendations from Korsup Minerba had been delivered to related stakeholders in mining and coal sector both in local and national levels. The recommendations includes evaluation of mining and coal procedures in regional government that is now under governor’s charge, after the stipulation of 2014 Law on local government. The law then followed up by the Energy and Mineral Resources Ministry by issuing 2015 Ministerial Decree on evaluation procedures of mining and coal permit issuance.
The deadline of those evaluation was agreed to be 90 days from when the ministerial decree firstly issued in December last year, or to be exact on mid-May of 2016.
Initially, KPK’s Korsup Minerba was made to identify problems and to reform Indonesian mining governance and it is applied in 31 provinces. During its three-year implementation, the anti-graft institution has been highlighting in five key points that are:
- IUP governance;
- Financial liability payment;
- Mining production monitoring,
- Sales monitoring,
- Shipment of mining products and refinery.
Therefore it is crucial for civil society organizations to monitor the whole process of Korsup Minerba to ensure that its implementation done rightly in order to bring light to the chaotic mining and coal governance in Indonesia entirely. Moreover, the Anti-Mining Mafia Coalition proposes the entire stakeholders in mining and coal sectors to do immediate steps as follows.
- The governor in 31 provinces to immediately revoke non-C&C mining permits as mandated in 2015 Ministerial Decree no later than 12 Mei 2016.
- The Mineral and Energy Resources Ministry should use his authority as instructed in 2009 Law to discipline troubled mining permits.
- The government must collect debts and financial liabilities of company in non-tax state revenue sector.
- The government must clean out the entire permits (IUP, CCoW, CoW) that go into conserved and protected area of forest.
- President Joko Widodo must issue presidential decree on mining moratorium.
- Provincial government must open access to information and data related to mining as stipulated by 2008 Law on transparency of public information.
The Anti-Mining Mafia Coalition:
- Auriga Nusantara
- Mining Advocacy Network (JATAM)
- Publish What You Pay (PWYP Indonesia)
- ICEL Indonesia Center for Environmental Law (ICEL)
- Indonesian Corruption Watch (ICW)
- Indonesian Forum for Budget Transparency (FITRA)