The implementation of Local Government Act No. 23/2014 impacted to the management of mining (mineral and coal) in subnational level. The licensing authorization of mineral and coal does not belong to regency/city anymore, but is drawn to the to province government. There is no technical guideline as a derivative regulation from local regulation act, so the province, district/city government are still confused about the authority transfer in mining sector. Even before the enactment of this act, mining management is chaotic enough.

Referring to the findings of coordination and supervision of KPK on mineral and coal sector in 2014-2015, there are big numbers of mining permits that are categorized as non-Clean and Clear (CnC). The latest data released by Energy and Mineral Resources Ministry shows that there are 3.966 non-CnC permits, mostly due to the absence of reclamation and post mining document and also the debt from royalty, land rent, and tax.

Responded to above problems, the Local House Representative of Yogyakarta initiated to formulate a Local Regulation Draft on Mining Management. However, In the first discussion, entitled Formulation of Local Regulation Draft on Minin Management held last (1/4), the number of CSOs f on the mining issues involved is still limited.

“The agenda of this discussion is limited to built mutual understanding among stakeholders on mining governance in Yogyakarta and also local government act,” said Sutata, chairman of Commission C DPRD Yogyakarta who’s also acted as moderator of the discussion. He added that it is still in an early stage. It surely will take time to complete the process.

Arifudin Idrus, one of speakers from Pusat Studi Lingkungan Hidup (PSLH) UGM, argues that we need a mining roadmap as a basis of government’s commitment in managing the natural resources. “Exploration activity along with its reporting, feasibility study, Environmental Impact Analysis (AMDAL), Environmental Management Attempt Document (UKL), Environmental Monitoring Attempt Document (UPL), and reclamation and post mining document; all of that must be integrated,” he said. Therefore, those documents must be carefully monitored, and public participation must in mining monitoring is a must.

Among points given by Idrus, there is an interesting reccommendation, which is to seek bargaining position of local government of DIY to pursue a golden share. With the golden share, the revenue from natural resources will substantially increase. For example, Banyuwangi Residence Government gets 10% golden share from PT BSI (Tumpang Pitu Gold Project). This innovative offering is surely interesting for the government, but on the other hand it will cause another problem, such as corruption, the change of government’s mindset to private’s mindset (seeking profit) and the neglect of ecological aspect.

In the next session, Mustapa Ali Muhammad, head of Energy and Mineral Resource Agency in Kulonprogo Regency, explained about the substance of 2009 Mining Act, Government Regulation No. 22/2010 on Mining Areas, Government Regulation No. 23/2010 on Implementation of Mining (Mineral and Coal) Business, Government Regulation No. 55/2010 on Fostering and Supervision of Mining Management Implementation, Government Regulation no. 78/2010 on Reclamation and Post Mining, and Ministry Regulation No. 32/2013 on Procedure on Giving Special Permit in Mining Sector. Besides that, he also presented about the licensing mechanism in DIY after local government act implemented.

The enactment of Local Government Act, has various impact to mining sector. Not all of them are negative, but some are also positive. Therefore we need to see that the implementation of Local Government Act is an opportunity as well as challenge for local government to manage mining sector in transparent, accountable, and environmental friendly manner. And the first step taken starts with pushing the regulation on mining management in subnational level. [YP, RAWSR]