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Provinces to have authority over mining, forestry & plantation concessions

Source
Jakarta Globe - April 1, 2013

The Indonesian government is planning to transfer the authority of issuing mining, forestry and plantation concessions from municipalities and districts to provincial administrations in an effort to increase oversight.

Home Affairs Minister Gamawan Fauzi on Monday said the move will make it easier for the central government to monitor the issuance of such concessions and prevent abuse.

"The [issuance of concessions] should be the authority of provinces so we'll only have to go one step down to control [related activities]," Gamawan said in Jakarta.

He added that provincial administrations had been unable to monitor permits issued by district and municipal administrations, forcing the central government to go to the field when there was a conflict.

"At present governors are supposed to monitor districts. But every time there's a problem, the Home Affairs Ministry has to get involved again," Gamawan told Indonesian news portal bisnis.com.

He added that district and municipal administrations would still be authorized to issue business permits to companies that wish to operate in their regions. They will also be encouraged to focus on improving public services.

Industry Minister M. S. Hidayat said he supported the new initiative, adding that his office agrees with any move to ease the issuance of permits to investors.

"Investors' concern is whether the process is fast and low cost. If the transfer allows for quicker [process] with no high cost involved, then it is good," Hidayat said, although he expressed skepticism as to whether the transfer of authority could be immediately done.

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