, Jakarta – Indonesian Civil Society Coalition Publish What You Pay (PWYP), urged the government to cancel the new policy on mining mineral exports, both for the export of raw materials (ore material) and processed (concentrate). The Government has issued Government Regulation (PP) Number 1 of 2017, Ministerial Regulation (Permen) of Mineral Resources Energy (ESDM) Number 5 of 2017 and ESDM Ministerial Regulation Number 6 of 2017.

PWYP Indonesia’s National Coordinator, Maryati Abdullah, said that all regulations relating to easing mineral exports must be revoked, because they were considered contrary to Law Number 4 of 2009 concerning Minerals and Coal (Minerba) articles 102 and 1003 which required mineral companies to process and refine mining products in the country.

The new regulation on mineral exports is also considered to be in conflict with Law No. 4 of 2009 article 170 which requires all holders of Contract of Work (CoW) who have been producing to purify no later than 5 years since the Minerba Act was enacted in 2009.

“The government has openly issued policies that contradict the mandate of the Minerba Law,” Maryati said, in Jakarta, Wednesday (1/18/2017).

Maryati said that the regulation is Government Regulation (PP) Number 1 of 2017 concerning the Fourth Amendment to PP Number 23 of 2010 concerning Implementation of Mineral and Coal Mining Business Activities, which must be revoked, because it contradicts Law Number 4 of 2009 concerning minerals and coal.

Ministerial Regulation (Permen) for Mineral Resources Energy (ESDM) Number 5 Year 2017 concerning Increasing Mineral Value Added through Domestic Mineral Processing and Refining Activities and ESDM Ministerial Regulation Number 6 Year 2017 concerning Procedures for the Requirement of Providing Recommendations for the Implementation of Overseas Mineral Sales Results Processing and Refining.

According to him, the three rules issued on January 11, 2017, provide a way for the government to grant licenses to export nickel and bauxite that have not been refined or low-grade, namely nickel levels below 1.7 percent and bauxite which has been carried out leaching which is still in the category raw.

Furthermore, this regulation provides an opportunity to change the status of a mining company from a Work Contract (KK) to a Mining Business License (IUP) and Special IUP (IUPK), without going through the process stipulated by the Minerba Law.

Maryati continued, the Government also clearly did not submit to the Constitutional Court Decision Number 10 / PUU-XII / 2014 which strengthened the domestic processing and refining obligations and stated that the spirit of the Minerba Law was in line with Article 33 of the Basic Law (UUD) 1945 because this obligation directly or indirectly provides the greatest benefit for the prosperity of the people. (Pew/Gdn)| In Media, Media Coverage|PWYP Indonesia|January 20th, 2017