– Indonesian National Publish What You Pay (PWYP) coordinator, Maryati Abdullah criticized the attitude of mining entrepreneurs who are still constrained in purifying natural products because there are no smelters. According to him, the government has given a long time for companies to prepare all infrastructure.

The rules regarding downstreaming are contained in Law No. 4 of 209 concerning Mineral and Coal Mining. The rules were completed in 2009 and took effect in early 2014. After that, the government still provides concessions for the export of concentrates with various requirements as stipulated in the Minister of Energy and Mineral Resources Regulation No. 1 of 2014 concerning Increasing Mineral Value Added through Mineral Processing and Refining Activities which are valid until the end of 2016.

In total, the government gave mining companies almost eight years to actually do domestic processing before exporting. For him, Maryati believes the government no longer needs to make concessions after 2017.

“If the government provides relaxation of concentrate exports for the next five years, then the total 13 years of time given to carry out downstreaming will certainly be a bad record where again the government is actually not compliant to carry out the law,” said Maryati Abdullah in the Restorat Tjikini Lima, Jakarta, Sunday (9/25).

The government must re-understand the meaning of downstream policy. This policy is not only meant to be limited to the export of raw materials or processed minerals (concentrates). But there are also thousands of Mining Business Permit (IUP) arrangements.

“This policy is important for the time of Indonesia which has been dependent on the economy through exports of raw materials. Downstreaming will provide added value to the industry, which consequently will increase state revenues, “said Maryati.

In addition, Maryati also urged the Government not to return to this mining relaxation policy aimed at opening up large-scale export of concentrates which would have a devastating effect. “Policy tugging and opening of mineral concentrate export taps is a form of regulatory inconsistency that has the potential to create economic injustice, social jealousy and legal or regulatory uncertainty for economic actors,” Maryati said.

According to him, the opening of export taps in the midst of a chaotic mining arrangement will trigger massive exploitation of natural resources, massive land and forest clearing, emergence of illegal mining, and irresponsible mining practices.

In Media, Media Coverage | PWYP Indonesia | September 26th, 2016