Press Release
No: 155/Ex-J/PR/Koord/I/2018
Publish What You Pay (PWYP) Indonesia urged the government to firmly sanction IUP (Mining Business Permit) holders that have not place the reclamation and post-mining funds. These were due to the low level of compliance among the IUP holders to pay for the reclamation fund and post-mining warranty. Until the beginning of 2018, the percentage of warranty placed by IUP holders is only accounted for 50% of all the existing IUPs, or almost 5000 IUP operated without fulfilling their obligations. Referring to Ministry of Energy and Mineral Resources regulation Number 7 Year 2014 about Reclamation and Post-mining, the placement of reclamation and post-mining warranty is a mandatory prerequisite to be met from the beginning, either the IUP holders are on the exploration phase, or had entered the production phase.
This issue shows that the government is still facing a grave problem. PWYP Indonesia Manager of Advocation and Network, Aryanto Nugroho had stated, IUPs that operated without placing the reclamation and post-mining warranty is solid proof of a flawed supervisory system. “Companies that had deviated the regulations and mining activity standards are still allowed to operate freely. This should not be allowed to happen” Aryanto iterated.
Carolus Tuah, the coordinator of POKJA 30 Samarinda had noted, poor implication of the disobedience of the IUP holders in relations to the reclamation and the post-mining warranty shows a concrete indication in various areas. “In Samarinda for example, 32 IUPs left 232 gaping mine pits without doing any reclamations. Throughout 2012 to 2017, 28 children had lost their lives in the mine pits owned by 17 IUPs in East Kalimantan.”
Carolus Tuah, also a member of PWYP Indonesia Advisory Board has expressed, “There is an absence in law enforcement, since Government seemed to not having any audacity to uphold the reclamation and post-mining warranty. What is the meaning of control to IUPs? Is this is an ignorance to the environmental crime?” added Carolus Tuah. PWYP Indonesia coerced the central government and the local government to immediately revoke IUPs that had not yet deposited the reclamation and post-mining warranty. This is concerning to the effort to reinforce IUP’s obligation that havenever get a satisfactory result.
Since 2015 to 2017, the Director-General of Minerals and Coals had issued 3 (three) warning letters. In fact, on June 2017, the Director General of Minerals and Coals had issued a Circular Letter No. 1187/30/DJB/2017 about Temporary Dismissal Sanction, to encourage level of compliance in the mining business, but this was still deemed ineffective. The data of Ministry of Energy and Mineral Resources in early 2018 shows that the compliance percentage of the reclamation and post-mining warranty has only increased by 2% in comparison to September 2017.
“From the administrative perspective, the revocation of IUP would be a must act in order to ensure compliance. It shall be noted that the revocation of IUP does not eliminate the obligation of IUP holders to carry out their reclamation and post-mining duties. The Ministry of Energy and Mineral Resources and the Ministry of Home Affairs must oversee and ensure the local governments to truly evoke IUP that do not submit the reclamation and post-mining warranty as well as preparing sanctions for Regents that do not comply.” Said Aryanto
Aryanto added, “The government should use criminal instruments, whether as stated in Law No. 4 Year 2009 About Mining of Minerals and Coals or Law No. 32 year 2009 About the Protection and Management of the Living Environment (PPLH), to all kinds of companies, either KK & PKP2B or IUP holders that are clearly disobedient to the obligation of reclamation and post-mining in which resulted significant environmental damage and causes lives to be lost.”
“Also, KPK, Chief of National Police, and Attorney General have to prioritize and ensure the resolution of criminal and/or corruption cases conducted by corporation in mining sector, including applying the Supreme Court Regulation Number 13 Year 2016 about the Procedures for Handling Criminal Activities done by Corporations”
PWYP Indonesia encouraged the government to open the data to the public of the complete names of companies that did not put their warranty of reclamation and post-mining. The government should impose as well as announce the black-list to corporations that committed mining crimes including their beneficial ownerships, also ensure to blockage any public services for the committed companies or the owner.
The government needs to build and develop the public complaints handling mechanism that is effective, responsive, and integrated. The existence of clear and continuous complaints handling mechanism enables any people to relay factual information and feedback about the companies’ compliance of their reclamation and post-mining obligation.
The Government should also focus on the preparedness of the human resources, especially in terms of the quantity of the Mining Inspector and Investigator of civil servants. Data from the Ministry of Energy and Mineral Resources (25 January 2017) has showed that the availability of mining inspector is not yet ideal, as there is only 949 personnel (including the personnel that have not trained) to foresee thousands of IUP holders across Indonesia. Not to mention, with the number of Minerals and Coals PPNS summing up to only 34 people without institutional support, infrastructure, and adequate budget. PWYP Indonesia encouraged the Ministry of Energy and Mineral Resources to form a law enforcement force with an adequate support to improve the effectiveness to oversee minerals and coals sector.
Contact Person:
Aryanto Nugroho (aryanto@pwyp-indonesia.org)
Carolus Tuah (carolus_tuah@yahoo.com)