Govt toughens stance on mining
Govt toughens stance on mining
Muninggar Sri Saraswati and Rendi A. Witular, Jakarta
The Ministry of Forestry will issue new regulations to
establish strict conditions for firms operating in protected
forests, in a bid to minimize environmental destruction.
The regulations are part of the ministry's attempt to help
restore its tarnished image after the endorsement of a
controversial government regulation in lieu of law that allows a
number of mining firms to resume open-pit operations in the
areas.
Spokesman of the Ministry of Forestry Transtoto Handadhari
said several decrees were being prepared by the ministry to limit
the potential destruction caused by mining operations on natural
forests and the environment nearby.
"Under the decrees, mining firms are expected to be more
accountable for any slight environmental damage resulting from
their operations," Transtoto told a media briefing on Wednesday.
Transtoto said that under the regulations, the firms would
have to deposit funds with the government, which would be used to
finance the rehabilitation of their mining site after their
concession expired.
"The deposits are to ensure that firms do not ignore their
responsibility to rehabilitate mining sites," he said.
Although the amount of the deposit had yet to be decided, a
source at the ministry said that it would be at least Rp 1
trillion (US$111 million) for each firm, depending on the size of
their concession area and the type of their mining products.
In exchange for a concession, firms would also have to provide
a plot of land larger than their concession if they operated in a
province whose natural forest accounted for less than 30 percent
of its total land area, he said.
Transtoto said the ministry would allow a year for firms to
meet the requirements, otherwise their licenses would be revoked.
The House of Representatives endorsed last week a government
regulation in lieu of law that allows mining firms to resume
open-pit operations in protected forests, along with a
presidential decree that grants licenses to 13 mining firms to
operate in such areas.
Transtoto said, however, that under the proposed regulations,
the 13 firms could not automatically operate in protected forests
as they had to secure an operating permit from the ministry. The
ministry would only issue permits for areas that had proven
mineral deposits.
The ministry will issue a permit after a recommendation from a
joint team, which includes representatives from the Indonesian
Institute of Sciences (LIPI).
Firms will have to renew their license every five years, and
if the ministry discovers any violation covered by forestry
legislation, the license will immediately be revoked.
Transtoto said another crucial ruling in the regulations was
that the ministry would divide each of the concessions into
blocks, meaning that a firm could not mine the next block unless
it had rehabilitated the previous one.
Elsewhere, executive director of Greenomics Indonesia Elfian
Effendi said that based on international practice, the 13 firms
should lodge a rehabilitation deposit totaling around Rp 154.7
trillion (US$17 billion).
Muninggar Sri Saraswati and Rendi A. Witular, Jakarta
The Ministry of Forestry will issue new regulations to
establish strict conditions for firms operating in protected
forests, in a bid to minimize environmental destruction.
The regulations are part of the ministry's attempt to help
restore its tarnished image after the endorsement of a
controversial government regulation in lieu of law that allows a
number of mining firms to resume open-pit operations in the
areas.
Spokesman of the Ministry of Forestry Transtoto Handadhari
said several decrees were being prepared by the ministry to limit
the potential destruction caused by mining operations on natural
forests and the environment nearby.
"Under the decrees, mining firms are expected to be more
accountable for any slight environmental damage resulting from
their operations," Transtoto told a media briefing on Wednesday.
Transtoto said that under the regulations, the firms would
have to deposit funds with the government, which would be used to
finance the rehabilitation of their mining site after their
concession expired.
"The deposits are to ensure that firms do not ignore their
responsibility to rehabilitate mining sites," he said.
Although the amount of the deposit had yet to be decided, a
source at the ministry said that it would be at least Rp 1
trillion (US$111 million) for each firm, depending on the size of
their concession area and the type of their mining products.
In exchange for a concession, firms would also have to provide
a plot of land larger than their concession if they operated in a
province whose natural forest accounted for less than 30 percent
of its total land area, he said.
Transtoto said the ministry would allow a year for firms to
meet the requirements, otherwise their licenses would be revoked.
The House of Representatives endorsed last week a government
regulation in lieu of law that allows mining firms to resume
open-pit operations in protected forests, along with a
presidential decree that grants licenses to 13 mining firms to
operate in such areas.
Transtoto said, however, that under the proposed regulations,
the 13 firms could not automatically operate in protected forests
as they had to secure an operating permit from the ministry. The
ministry would only issue permits for areas that had proven
mineral deposits.
The ministry will issue a permit after a recommendation from a
joint team, which includes representatives from the Indonesian
Institute of Sciences (LIPI).
Firms will have to renew their license every five years, and
if the ministry discovers any violation covered by forestry
legislation, the license will immediately be revoked.
Transtoto said another crucial ruling in the regulations was
that the ministry would divide each of the concessions into
blocks, meaning that a firm could not mine the next block unless
it had rehabilitated the previous one.
Elsewhere, executive director of Greenomics Indonesia Elfian
Effendi said that based on international practice, the 13 firms
should lodge a rehabilitation deposit totaling around Rp 154.7
trillion (US$17 billion).