Ternate – Coordination and Supervision (Korsup) of the mining sector is part of the National Movement to Save Natural Resources (GN-PSDA), declared in 2014 in Ternate, North Maluku. Korsup of the mining sector aims to encourage improved mining governance free of corruption, collusion, and nepotism and strengthen law enforcement in the natural resources sector. Korsup of the mining sector was initiated by the Corruption Eradication Commission (KPK), involving various stakeholders at the national and regional levels, as well as the involvement of civil society and academics.

KPK and the Ministry of Energy and Mineral Resources (MEMR) held an offline “Coordination and Supervision of Mining Sector in Seven Provinces” Kick Off Meeting in Ternate, North Maluku, on Tuesday, March 29, 2022. The seven provinces include Bali, West Nusa Tenggara, East Nusa Tenggara, Maluku, North Maluku, Papua, and West Papua. The event was attended by various stakeholders at the national and regional levels, as well as civil society organizations.

A. Abdul Gani Kasuba, Governor of North Maluku, gave a speech that North Maluku Province is one of the provinces that has a significant mining sector wealth, such as nickel and iron sand. Therefore, it attracts investors to encourage the downstream of the mining sector. One of them is the construction of a smelter in Halmahera. His speech also emphasized the importance of good governance in the mining sector so it is utilized as much as possible for the prosperity of the people. “I have high hopes for all of us. Hopefully, this meeting will advance the mining sector in North Maluku and six other provinces. Make this meeting an important meeting to improve governance in the mining sector,” he said.

Nurul Ghufron, Deputy Chairman of KPK, explained the purpose of this Korsup activity. This Korsup will be a forum to equalize voices between stakeholders both at the central and regional levels. With this Korsup, it is hoped that stakeholders in the mining sector will have the same vision. “The requirement for coordination is to have the same vision, what do we see mining as, revenue, energy source, sustainability,” he concluded. Nurul also emphasized that coordination needs to understand the structure, function, and role at the central and regional levels. “We must also understand and share each other’s strengths and weaknesses. When the regions do not have technical personnel, the center can help with that. Vice versa, when the center does not know about the situation in the field directly, then the region plays a role in helping,” said Nurul.

Muhammad Wafid A.N., Director of Mineral and Coal Revenue (Minerba) of ESDM, gave a presentation related to the mining sector in Indonesia, which included regulatory aspects, obligations, and licensing data for the mineral and coal sub-sector, and also information about illegal mining (PETI). In the regulatory element, the government is currently drafting several derivative regulations from Law No.3 of 2020 or the Minerba Law. Some of these derivative regulations include the Draft Government Regulation (RPP) on Mining Areas, RPP on Guidance and Supervision as well as Reclamation and Post-mining in the Implementation of Minerba Mining Business Management, and several other Draft Ministerial Regulations (RPermen ESDM), such as RPermen on Procedures for Granting Licenses and Reporting, RPermen on Procedures for Granting Areas in the Minerba Mining Sector, and others. Wafid added that in the context of the regional authority, the central government is currently drafting a Presidential Regulation (RaPerpres) on the Delegation of Business Licensing in the Minerba Mining Sector.

Wafid added that the obligations of business entities according to Permen ESDM No.7 of 2020 and Permen Finance No.61 of 2021 include 1) Submitting an Annual RKAB Report; 2) Placing Reclamation and Post-mining Guarantees; 3) Implementing Community Development and Empowerment Programs (PPM); 4) Increasing Added Value, and 5) Making Non-Tax State Income (PNBP) Payments. At the end of his presentation, Wafid gave an overview of the distribution of PETI locations throughout Indonesia. “If we look at the data from March 2022, the PETI locations reached 195 locations spread across six provinces (Bali is omitted). We are trying to handle it by inviting other stakeholders to enforce the law against illegal mining,” said Wafid.

Dian Patria, Head of the KPK’s Prevention Coordination Task Force Region V Directorate, sparked the panel discussion by explaining ten challenges in the mining sector today. The new Mining Law regulates the decentralization of mining authority from the regions to the center. It has created a recent polemic regarding the role of areas in managing their natural resources. Dian emphasized that this decentralization of authority will impact weak supervision in the field, resulting in the rise of illegal mining and increasingly massive environmental impacts. “From our observations, there are ten challenges in the mining sector today, namely 1) Decentralization of authority; 2) Illegal exports; 3) Non-compliance of license holders; 4) Weak supervision; 5) Environmental impact; 6) Foreign labor issue; 7) IUP “reincarnation”; 8) Contribution to the local economy; 9) Social conflict; 10) Illegal mining,” she said. Dian added that solving these challenges requires the support of all parties, both at the national and regional levels, to collaborate, build synergy, and integrate mining sector data from upstream to downstream.