The Coordinator and Supervision in mineral and coal sector initiated by Corruption Eradication Commission find dozens of mining licenses are not certified Clear and Clean or commonly defined as non-C&C. 80% non-C&C licenses do not have reclamation and post-mining document, meaning that these companies ignored environmental standard in extracting mineral and coal. This issue triggered the discussion on “Reformation in Mining Policy Governance”, last 3/2 in Menteng.

Rudy Hendarto, a Mining Inspector, spoke about Ministry Regulation No. 7/2014 about Reclamation and Post-Mining in the discussion. “It is mandatory for mining company to submit reclamation plan as well as reclamation and post-mining fund as a guarantee of environmental improvement on impacted area of mining activity,” said Rudy.

Rudy further explained that holders of exploitation licenses required to hand reclamation plan for five years period. “While post-mining activity is conducted after the completion of mining operation, which consists of reclamation, reclamation preservation, community development and empowerment and monitoring,” continued Rudi.

To show company’s commitment in conducting reclamation and post-mining activity, they’re required to place reclamation and post-mining funds in government bank on behalf of license’s holder in the form of joint account, term deposit, bank guarantee published by government’s bank or in accounting reserve.

In the second session, Sony Heru Prasetyo from Directorate General Mineral and Coal, shared an updated mining license policy after the enactment of Law No. 23/2014. “The moratorium of mining licenses issuance in central government is still valid till today, due to the unfinished arrangement of C&C and non-C&C licenses. In May 2011, the number of non-C&C license is around 5.884. But the number is decreasing to 3.960 in January 2016 after Coordination and Supervision”, said Sony.

Minister Regulation No. 43/2015 about the Evaluation Procedure for Mining License Issuance also accelerates mining policing with minister/governor as sanctions giver, including license revocation, to license’s holder that doesn’t meet the criteria in several aspects, such as administrative, area, technical, environment and financial.

Then, as the impact of the enactment of 2014 Local Government Act, the governor has an authority to evaluate and revoke non-C&C licenses, including curbing the licenses which do not pay reclamation and post-mining fund.