Mining powers transferred to provincial administrations<\/p>\n
JAKARTA (JP): Central government will authorize some
\nprovincial administrations to supervise the mining industry in
\ntheir respective areas on a temporary basis, as the regencies
\nthere are thus far considered not ready to carry out the job, a
\nsenior official of the Ministry of Energy and Mineral Resources
\nhas said.<\/p>\n
Under Autonomy Law No. 22\/1999 and the Intergovernmental
\nFiscal Balance Law No. 25\/1999, both of which took effect as of
\nJan. 1 this year, regency administrations took over mining
\nsupervision from central government.<\/p>\n
But, Wimpy S. Tjejep, the director general of geology and
\nmineral resources, said many regencies were not yet ready to take
\nover mining supervision due to lack of skilled human resources
\nand modern infrastructure.<\/p>\n
\"In such a situation, the supervision of the existing mining
\ncontracts will be carried out by the provincial administrations
\non behalf of the central government,\" Wimpy said Monday evening
\nfollowing a business dinner entitled \"Indonesian Mining Policy in
\nthe Era of Regional Autonomy. Resolving the Uncertainties\",
\norganized by mining and oil news provider Petromindo.Com.<\/p>\n
The implementation of regional autonomy has caused confusion
\namong mining investors given the fact that the autonomy law is in
\nconflict with previous Mining Law No. 11\/1967 that gives the
\ncentral government the right to manage the mining industry.<\/p>\n
Mining investors are also concerned with the fact that many
\nregencies lack skilled human resources and modern infrastructure
\nto carry out the supervision.<\/p>\n
Some 20 foreign and local mining companies have reportedly
\nsuspended their operations, citing the uncertainties arising from
\nthe implementation of the autonomy law.<\/p>\n
Many banks have also reportedly declined to channel loans to
\nmining firms wishing to invest in the country for similar
\nreasons.<\/p>\n
Wimpy said the government's policy to give the provinces
\nrights to supervise the mining industry was expected to be able
\nto address the investors' concerns.<\/p>\n
\"So far, there is no problem. We hope the regency
\nadministrations can accept the policy,\" Wimpy was quoted by
\nAntara as saying.<\/p>\n
Wimpy did not name the provinces that will be authorized by
\nthe government to carry out the mining rights.<\/p>\n
Legislator Emir Moeis, who is a member of the House of
\nRepresentatives Commission VIII for environmental, science and
\ntechnology affairs voiced support for the government's policy.<\/p>\n
\"The policy has a positive goal. It is the best solution for
\nthe transition period,\" he said.<\/p>\n
Under the autonomy law, regencies can issue mining permits and
\nregulations and receive 80 percent of mining royalties. (03)<\/p>",
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"sponsor": "Okusi Associates",
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