Jakarta – The presence of the Regional Representatives Council (DPD RI) of the Republic of Indonesia as a regional representative institution is intended to strengthen the ties of the regions within the Unitary State of the Republic of Indonesia and strengthen the national unity of all regions, increase aggregation, accommodate aspirations, and interests of the regions in the formulation of relevant national policies with the state and regions, as well as encouraging the acceleration of democracy, development and regional progress in a harmonious and balanced manner. The implementation of the duties of the DPD has been increasingly enhanced since the promulgation of Law Number 2 of 2018, as last amended through Law Number 13 of 2019 concerning the Second Amendment to the Law on the People’s Consultative Assembly, the People’s Representative Council, the Regional Representative Council, and the Regional People’s Representative Council (UU MD3).

Based on the duties and powers of the DPD, the Regional Affairs Legislation Body (BLUD) DPD RI held a Public Hearing (RDPU) BLUD DPR RI on September 14, 2022, in the Padjadjaran Meeting Room, Building B DPD RI Floor 2, Parliament Complex, Senayan, Jakarta. RDPU with mining governance experts and practitioners to gather information on licensing problems in the mining and forestry sectors and improve Indonesian mining governance in the framework of sustainable development and its implications for the region.

In his remarks, Stefanus BAN Liow, the chairman of the RDPU and the chairman of BULD DPD RI, said that his party is currently focusing on monitoring regional regulations and regulations related to mining, the environment, and forestry. According to him, the provincial government’s authority which the central government has taken over, has resulted in a change in the licensing system in the mining, environmental, and forestry sectors. The dynamics are rolling again with the Law on Central and Regional Financial Relations (HKPD), and the emergence of the Job Creation Law has implications for regional authorities.

“Regarding the issue of the transfer of licensing authority to the central government, the regions must make adjustments through regional regulations and regulations to the laws and regulations above them. In addition, BUILD DPD RI also highlights the negative impacts on local communities due to mining exploitation,” said Stefanus BAN Liow.
The National Coordinator of the Publish What You Pay (PWYP) Indonesia coalition, who was present as a guest speaker, delivered his presentation entitled “Problematics of Licensing in the Mining and Forestry Sector, and Improving Mining Governance in Indonesia in the Context of Sustainable Development and the Implications for Regional Policies.”

According to Aryanto, governance certainly talks about participation, accountability, and transparency in managing natural resources in Indonesia. According to him, the current phenomenon is that regions with high natural resources tend to be poor and left behind and are not comparable to the natural resources that have been exploited.
Aryanto further added that several things must be done: synchronizing regulations, forming regional supervisory units, improving licensing information disclosure mechanisms, integrating complaint channels and handling mechanisms, and developing collaborative mechanisms for accountability for a mining license.

“Sadly, most of the areas are rich in natural resources, but the average poverty rate is high, and the pace of the economy in the area is low; this is what must be corrected by the impact of this exploitation so that the negative impact becomes an energy transition that has a good impact on the area,” said Aryanto.

On this occasion, Aryanto submitted a study by PWYP Indonesia entitled Diagnostic Study of Mineral and Coal Mining Licensing Management Issues to the DPD RI.
Besides Aryanto, Ahmad Redi, a Mining Law Specialist from Tarumanegara University, was also present as a guest speaker who delivered his presentation entitled “National Regulatory Policy in the Mineral and Coal Mining Sector, Licensing and Supervision of Mining Business Activities, Environmental Impacts in the Regions, and the Implications for Regional Authority in Mineral and Coal Mining Sector”.