Jakarta, CNN Indonesia-Civil Society Coalition plans to sue the Minister of Energy and Mineral Resources (ESDM) Ignasius Jonan to the Supreme Court (MA) related to two ESDM Ministerial Regulations (Permen) which was just launched yesterday.

Both of these Ministerial Regulations, namely ESDM Minister Regulation Number 5 Year 2017 concerning Increasing Mineral Value Added through Mineral Processing and Refining Activities in the Country. Then, Permen Number 6 of 2017 concerning Procedures and Requirements for Providing Recommendations for the Implementation of Mineral and Overseas Processed Mineral Sales.

Ahmad Redi, a representative of the Civil Society Coalition, said that his party is currently preparing points for a lawsuit against the two Permen, which will then be sent to the Supreme Court next week.

“Maybe next Tuesday or Wednesday, I will submit it to the Supreme Court. Currently the lawsuit is being compiled and finalized by this coalition team, “Ahmad told CNNIndonesia.com, Friday (13/1).

In their lawsuit later, the Civil Society Coalition emphasizes the making of the two Permen which substantially violates the previous rules. Because, according to Ahmad, the government should fix changes to Law (Law) Number 4 of 2009 concerning Minerba before forming derivative rules.

In his lawsuit, there are at least three basic points contained in the two Ministerial Regulations, but they are contrary to the Minerba Law and also the results of the Constitutional Court Decision Number 10 / PUU-XII / 2014 concerning the Results of Material Tests on Article 102 and Article 103 of the Minerba Law.

First, the granting of export licenses for unrefined or low-grade nickel and bauxite. In Permen Number 6 Year 2017 it is stated that the government grants a nickel export permit if it has a level below 1.7 percent. In addition, there are also rules about bauxite exports that have been carried out leaching.

“Because based on the Minerba Law it is clear, it must be purified and processed first in the country,” said Ahmad, who is also an observer of energy and natural resources from Tarumanegara University.

Second, related to the change in the status of a mining company from a Work Contract (KK) to a Mining Business License (IUP) and Special IUP (IUPK). In fact, the change in status should go through a number of series in advance or not as easily as determined by Jonan in his new Permen.

Ahmad explained, the series of changes started from the status of the state reserve area where it was determined in advance by the House of Representatives (DPR) to subsequently be converted into a special mining area (IUPK).

If it has changed to IUPK, the government should offer it first to a State-Owned Enterprise (SOE) company and then offer it to a private company in the auction stage.

“But suddenly in Permen, do not use that method. But immediately decided KK to IUPK. This violates the processes and procedures in the Minerba Law,” Ahmad added.

Third, related to the relaxation or relaxation of mineral and coal exports given to companies that have IUPK status. In fact, according to Permen Number 1 of 2014, the government should no longer give mineral and mineral export licenses to mining companies that have never built a mineral refining and processing (smelter).

“These three points are in plain sight not in accordance with the provisions of the Minerba Law, particularly Article 102, Article 103 and Article 170, as well as several other articles regarding the reserve area, also not in accordance with MK Decree No. 10 of 2014,” explained Ahmad.

As for the lawsuit later, the Civil Society Coalition will invite Indonesian Advocacy and Publish What You Pay (PWYP) Network Managers, the Indonesian Forum for Budget Transparency (Fitra), and several other institutions. (gen)

Source: here.

In Media, Media Coverage|PWYP Indonesia|January 20th, 2017