TRIBUNNEWS.COM, JAKARTA – Regulation of the Minister of Energy and Mineral Resources (Permen ESDM) No. 5/2017 concerning Increasing Mineral Value Added through Domestic Mineral Processing and Refining Activities, reaping a lawsuit from the Civil Society Coalition.

This coalition consists of PWYP Indonesia, Jatam, Kahmi, Pushep, LBH Bogor, LBH Depok, Fitra, Walhi West Nusa Tenggara, Walhi Bangka Belitung and Energi World Indonesia.

This includes legal experts such as Ahmad Redi, Marwan Batubara, Fahmy Radhi, Yusri Usman and Berly Martawardaya.

The coalition will file a lawsuit to the Supreme Court on Wednesday (1/18). “We submitted Wednesday before the press conference,” said Ahmad Redi, an observer of natural resource law from Tarumanegara University (Untar), to KONTAN, Tuesday (1/17/2017).

According to him, the passage of exports of raw minerals such as nickel and bauxite violated the provisions of the Constitutional Court (MK).

The agency said, mineral export activities could be carried out, after the miners fulfilled the obligation to process and purify minerals in domestic smelters.

He also questioned the change in the status of the work contract to a Special Mining Business License (IUPK). Because, there are stages in changing the status. Such must be changed to the State Reserve Area (WPN), and then to become a Special Mining Business Permit Area (WIUPK).

Then there is an offer to BUMN. If SOEs are not interested, then the offer for a contract of work that turns into an IUPK can be directed to the private sector by auction. “Changes in the contract of work directly to the IUPK are legally flawed when referring to the Minerba Act,” he said.

For the record, ESDM Regulation No 5/2017 is a derivative of Government Regulation No. 1/2017 concerning the Fourth Amendment to Government Regulation No. 23/2010 concerning the Implementation of Mineral and Coal Mining Business Activities.

PWYP Indonesia National Coordinator Maryati Abdullah rate, the government policy is not consistent in the field of mineral mining. “This relaxation series completes the list of government inconsistencies related to the downstream policy since the issuance of ESDM Ministerial Regulation No 20/2013, ESDM Ministerial Regulation No 1/2014, ESDM Ministerial Regulation No 5/2016 until the issuance of the latest ESDM Ministerial Regulation,” he said.

Hermawansyah, Director of the Swandiri Institute of West Kalimantan, said that based on a report from the University of Indonesia’s Institute of Economic and Community Research (LPEM UI), a ban on mineral exports has reduced illegal mining. If the export of raw minerals is opened up, illegal mining will flourish again. “We cannot imagine the damage that has occurred, like in West Kalimantan,” he said.

Secretary General of the Ministry of Energy and Mineral Resources Teguh Pamudji ensured, his party had consulted the preparation of the regulation with the House of Representatives (DPR). Changing the contract of work to an IUPK also remains in line with the Minerba Law. “Changing the contract of work to an IUPK does not violate the Minerba Law,” he said, at the ESDM Ministry’s Office. Under the Minerba Law, the ex-contract area of ​​work as WIUPK does not need to be consulted with the DPR.

Deputy Minister of Energy and Mineral Resources Arcandra Tahar said, would not change or revise the candy. “If the rules are out, we will keep it,” he said.| In Media, Media Coverage|PWYP Indonesia|January 20th, 2017