JAKARTA. Publish What You Pay (PWYP) Indonesia asked new officials in the Directorate of Mineral and Batubata of the Ministry of Energy and Mineral Resources (ESDM) to focus on completing the mandate of Law Number 4 of 2009 concerning Minerals and Coal. Namely, the completion of the work contract renegotiation (KK) and the coal mining concession agreement (PKP2B).

Aryanto Nugroho, Advocacy Manager and PWYP Indonesia Network, said that until the deadline for the renegotiation given by the Law, which was January 12, 2010, only one of the 107 companies completed the contract renegotiation.

“The Director General of Mineral and Coal must immediately complete the process of renegotiating KK and PKP2B in a transparent and accountable manner,” he said in a press release received by KONTAN, Sunday (10/5).

Out of a total of 34 KK and 73 PKP2B, only 1 KK, namely PT Vale Indonesia, signed the amendment of the contract in September 2014. While most of these are limited to signing the memorandum of understanding (MoU) of the contract amendment.

According to him, renegotiations related to six strategic issues such as area size, continuation of mining operations, royalties, processing and refining obligations, divestment of shares, as well as increasing labor, goods and mining services in the country must be completed immediately in order to be of great benefit to Indonesia.

Beside renegotiation, downstreaming and enhancing mining value added and structuring mining licenses as well as enforcing environmental and social standards must also be a concern of the Ministry of Energy and Mineral Resources.

Aryanto said, the government must immediately complete the arrangement of 4,296 Mining Business Permits (IUP) that are still non-clean and clear (non CnC). “Based on the calculation of PWYP Indonesia, the potential lost from land rent payments in 2009-2013 in 12 provinces alone reached Rp 919.18 billion,” he said.

Previously, the Ministry of Energy and Mineral Resources stated there were two agendas that should be prioritized by the Directorate General of Mineral and Coal under the new leader Bambang Gatot Ariyono who replaced R Sukhyar’s position.

First, mining consolidation in the form of completion of a non-CnC IUP. Second, oversee the mineral downstreaming program to increase added value in the country.

“We will consistently carry out mineral downstreaming programs for the national interest. This program cannot be withdrawn, “said ESDM Minister Sudirman Said when inaugurating echelon I and echelon II within the Ministry of Energy and Mineral Resources.

http://industri.kontan.co.id | Muhammad Yazid – Sunday, May 10, 2015 | 17:29 WIB