Govt drafts rules on mining authority under autonomy law<\/p>\n
JAKARTA (JP): A regulation on the delegation of authority in
\nthe mining and energy sector is being prepared to support the
\nimplementation of the autonomy law, a senior minister said here
\non Tuesday.<\/p>\n
Minister of Mines and Energy Susilo Bambang Yudhoyono said
\nhere on Wednesday that such a regulation was necessary to prevent
\nmisunderstandings among the central, provincial and regency
\ngovernments.<\/p>\n
\"This regulation is also important to ensure legal and
\nbusiness certainty to investors,\" Bambang said in a press meeting
\ndiscussing the ministry's new vision, mission and strategies for
\nthe next five years.<\/p>\n
The minister said that the regulation would serve as the basis
\nfor the implementation of the autonomy law in the mining and
\nenergy sector.<\/p>\n
Under autonomy as regulated in Law No. 22\/1999 on Regional
\nAdministration and Law No. 25\/1999 on Intergovernmental Fiscal
\nBalance, regions will manage their own affairs.<\/p>\n
Last month, Bambang said that despite the region's greater
\nautonomy, the ministry would retain control over important
\nindustries affecting the nation's economy.<\/p>\n
Under the draft regulation, the ministry would delegate a
\nportion of its authority to provinces and further down to
\nregencies and\/or mayoralties.<\/p>\n
Provincial administrations will, for example, issue mining
\npermits on core activities such investment, exploration and
\nproduction in overlapping areas in regencies and\/or mayoralties,
\nand at sea within 12 sea miles of their coasts.<\/p>\n
Provinces will also plan and control the use of mining and
\nenergy natural resources, including the implementation of
\nenvironmental audits.<\/p>\n
They would also train and allocate human resources as well as
\nconduct geological, mineral and energy researches.<\/p>\n
Whereas mayoralties and regencies would receive the authority
\nto issue permits on mining core businesses, limited to their
\nrespective regions and up to four sea miles of their coasts.<\/p>\n
Permits for general oil and natural gas core businesses would
\nalso fall under the regency and mayoralty authorities.<\/p>\n
Regencies and mayoralties would issue permits on oil and
\nnatural gas core businesses within their regions. No explanation
\nwas available to specify the range of oil and natural gas core
\nbusinesses.<\/p>\n
The central government, however, would still regulate the use
\nof mineral resources, energy and below earth water reservoirs on
\na national scale.<\/p>\n
It would also regulate contractual terms, mining fees and
\ngeographic surveys on mineral resources and energy.<\/p>\n
The ministry would handle the regulation of related high
\ntechnologies and the development of research in the mining and
\nenergy sector.<\/p>\n
Regulations on fuel, compressed natural gas and natural gas
\nassets would remain under the ministry's authority, including
\nregulations on state income and subsidies.<\/p>\n
On the implementation level, the central government would
\nissue permits on main oil and gas core businesses, covering
\nexploration, exploitation, construction of refineries and
\npipeline transportation of oil and gas.<\/p>\n
The ministry would issue permits on electricity core
\nbusinesses covering cross-province development of transmissions
\nand operation\/distribution systems.<\/p>\n
It would oversee the implementations of macro policies in the
\nmining and energy sector including setting domestic prices on
\nelectricity, fuel, natural compressed gas and natural gas.<\/p>\n
The central government will regulate and supervise information
\nsystems on mineral and energy resources, and explorations at the
\nouter limits of the Indonesian continental shelf.<\/p>\n
It will regulate technical guidance on mining and energy
\nenterprises, human resources, and regulate safety procedures for
\nthe mining and energy industry, which include the general safety
\nof electricity workers. (03)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-drafts-rules-on-mining-authority-under-autonomy-law-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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