JAKARTA, KOMPAS.com – The government’s plan to relax the export of concentrates has received a response from a number of groups. One of them is the non-governmental organization Publish What You Pay (PWYP).
According to PWYP Indonesia’s National Coordinator Maryati Abdullah, if it is true that the plan is realized, a number of negative impacts will emerge.
First, the relaxation of concentrated exports raises legal uncertainty in mining business activities in Indonesia.
Maryati said, since the issuance of Law Number 4 of 2009, a number of derivative rules were made, amended and revised which showed inconsistencies in government regulations regarding mineral downstreaming.
“This relaxation is even an indication of legal uncertainty in the economic activities of the mineral and coal sector. I am worried that this will cause a bad investment climate in the eyes of the world and domestic businesses, “Maryati said in a discussion in Jakarta, Sunday (9/25/2016).
Secondly, the reopening of the concentrate export tap can disrupt efforts to reform and restructure mining permits (IUP) in Indonesia.
Maryati said that currently there are 6,541 IUP Minerals including metals, non-metals and rocks issued by the local government. Around 2,500 of them do not have Clean and Clear (CNC) status.
“This is an emergency situation. If relaxation occurs, mining (illegal) will be massive, exploitation of natural resources will occur on a large scale, land clearing and forests will occur which can lead to various conflicts,” said Maryati.
Third, the relaxation of concentrated exports will ensnare Indonesia back to colonial-style exploitative economic activities. Maryati said, in this activity natural resources were only seen as a commodity.
“The government should change the mindset that natural resources are assets. One of the strategies is the strategy to increase added value or downstream, “said Maryati.
In Media, Media Coverage | PWYP Indonesia | September 25th, 2016