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Court's ruling on mining has 'little impact' on government authority

Source
Jakarta Post - November 24, 2012

Amahl S. Azwar, Jakarta – The Constitutional Court's verdict on the 2009 Mining Law will not have a huge impact on the central government's authority in determining mining areas across the nation, although it did affirm the role played by regional administrations, an official said on Friday.

The Energy and Mineral Resources Ministry's head of legal and public relations, Susyanto, told The Jakarta Post that the court's verdict, which was delivered on Thursday, would not affect the central government's authority in designating mining areas.

"While the local administrations now have authority to determine mining zones in their respective areas, the government will verify the proposed areas and final decisions will be reached after consulting with the House of Representatives," he said.

The central government, he said, would soon be publishing standard operating procedures (SOPs) for determining mining areas, following the court's decision.

Echoing Susyanto's statement, Deputy Energy and Mineral Resources Minister Rudi Rubiandini said in a text message sent to the Post that the government would still verify all proposed mining areas from the local administrations.

"Local administrations can propose designated mining areas to us according to their studies, but the government can carry out verification to ensure the suitability with the national plan for the mining sector," he said.

In its ruling, the court altered Article 6, Paragraph 1 of the Mining Law from "mining areas are determined by the central government after coordinating with local administrations", to "the central government sets the mining areas after they are determined by local administrations".

In addition, the court also revised Article 14, paragraphs 1 and 2 of the law, which instructs the government to set a mining business location (WUP) after receiving a proposal from the respective regional administration, which determines the areas to be designated WUPs.

The judicial review on the 2009 Mining Law was filed by Irsan Noor, the regent of East Kutai in East Kalimantan, one of the coal-producing provinces in Indonesia, which is the largest exporter of thermal coal and the largest producer of nickel ore in the world.

Speaking before reporters after the court announced its verdict in Jakarta on Thursday, Irsan said he appreciated the ruling, citing that "the local leaders know their people and their areas best".

Contacted separately, Indonesian Mining Association (IMA) executive director Syahrir Abubakar said the ruling would not have a significant impact on local miners as the government was currently drafting the nation's spatial planning and zoning regulations, including determining mining areas.

"The revised law still allows the government to consult with the local administrations should they doubt the planned mining areas proposed to them. I do not think there is a problem," he said.

The association maintained, however, that the government should provide direction, controls, education and training to regional leaders to ensure there were no problems at regional level in determining mining areas, he added.

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