Govt drafts rules on mining authority under autonomy law
Govt drafts rules on mining authority under autonomy law
JAKARTA (JP): A regulation on the delegation of authority in
the mining and energy sector is being prepared to support the
implementation of the autonomy law, a senior minister said here
on Tuesday.
Minister of Mines and Energy Susilo Bambang Yudhoyono said
here on Wednesday that such a regulation was necessary to prevent
misunderstandings among the central, provincial and regency
governments.
"This regulation is also important to ensure legal and
business certainty to investors," Bambang said in a press meeting
discussing the ministry's new vision, mission and strategies for
the next five years.
The minister said that the regulation would serve as the basis
for the implementation of the autonomy law in the mining and
energy sector.
Under autonomy as regulated in Law No. 22/1999 on Regional
Administration and Law No. 25/1999 on Intergovernmental Fiscal
Balance, regions will manage their own affairs.
Last month, Bambang said that despite the region's greater
autonomy, the ministry would retain control over important
industries affecting the nation's economy.
Under the draft regulation, the ministry would delegate a
portion of its authority to provinces and further down to
regencies and/or mayoralties.
Provincial administrations will, for example, issue mining
permits on core activities such investment, exploration and
production in overlapping areas in regencies and/or mayoralties,
and at sea within 12 sea miles of their coasts.
Provinces will also plan and control the use of mining and
energy natural resources, including the implementation of
environmental audits.
They would also train and allocate human resources as well as
conduct geological, mineral and energy researches.
Whereas mayoralties and regencies would receive the authority
to issue permits on mining core businesses, limited to their
respective regions and up to four sea miles of their coasts.
Permits for general oil and natural gas core businesses would
also fall under the regency and mayoralty authorities.
Regencies and mayoralties would issue permits on oil and
natural gas core businesses within their regions. No explanation
was available to specify the range of oil and natural gas core
businesses.
The central government, however, would still regulate the use
of mineral resources, energy and below earth water reservoirs on
a national scale.
It would also regulate contractual terms, mining fees and
geographic surveys on mineral resources and energy.
The ministry would handle the regulation of related high
technologies and the development of research in the mining and
energy sector.
Regulations on fuel, compressed natural gas and natural gas
assets would remain under the ministry's authority, including
regulations on state income and subsidies.
On the implementation level, the central government would
issue permits on main oil and gas core businesses, covering
exploration, exploitation, construction of refineries and
pipeline transportation of oil and gas.
The ministry would issue permits on electricity core
businesses covering cross-province development of transmissions
and operation/distribution systems.
It would oversee the implementations of macro policies in the
mining and energy sector including setting domestic prices on
electricity, fuel, natural compressed gas and natural gas.
The central government will regulate and supervise information
systems on mineral and energy resources, and explorations at the
outer limits of the Indonesian continental shelf.
It will regulate technical guidance on mining and energy
enterprises, human resources, and regulate safety procedures for
the mining and energy industry, which include the general safety
of electricity workers. (03)