Jakarta: Indonesian Civil Society Coalition Publish What You Pay (PWYP) urges the government to cancel the policy of relaxation of mineral mining exports, both for the export of raw materials (ore materials) and concentrates.
President Jokowi must revoke Government Regulation (PP) Number 1 of 2017 concerning the Fourth Amendment to PP Number 23 of 2010 concerning Implementation of Mineral and Coal Mining Business Activities. It also includes derivative regulations, ESDM Ministerial Regulation (Permen) Number 5 Year 2017 and ESDM Ministerial Regulation Number 6 Year 2017.
PWYP Indonesia National Coordinator Maryati Abdullah said the three regulations issued, provided a way for the government to grant licenses to export nickel and bauxite which had not been refined or had low levels, namely nickel with a level below 1.7 percent and bauxite which had been leached.
The regulation also provides an opportunity to change the status of a mining company from a Work Contract (KK) to a Mining Business License (IUP) and Special IUP (IUPK), without going through the process stipulated by Law Number 4 of 2009 concerning Mineral and Coal Mining to provide concessions for IUPK to export concentrates for the next five years.
“The government has openly issued policies that contradict the mandate of the Minerba Law articles 102 and 103 which require mineral and coal companies to process and refine domestic mining products,” Maryati said in her written statement, in Jakarta, Wednesday (1/18/2016).
In addition, the regulations also contradict article 170 which requires holders of Contract of Work to conduct purification.
“At the same time it contradicts article 170 which requires all KK holders who are already producing to purify no later than five years after the Minerba Act was enacted in 2009,” he added.
PWYP Advocacy Manager Aryanto Nugroho also added that the relaxation of concentrate exports over the next five years made a total of 13 years of time given to mining entrepreneurs to build downstream industries since the Minerba Law was passed.
“This relaxation series completes the list of government inconsistencies related to the downstreaming policy since the issuance of ESDM Ministerial Regulation No. 20 of 2013, ESDM Ministerial Regulation No. 1 of 2014, ESDM Ministerial Regulation No. 5 of 2016 until the issuance of the latest ESDM Ministerial Regulation,” said Aryanto.
In Media, Media Coverage|PWYP Indonesia|January 18th, 2017