The
Mineral and Coal Law No. 4/1999 has been very accommodative to national
interest, while on the other hand, it denies or eliminates foreign interest. Work
Committee (Panja) of the House of Representatives, during deliberation of the
Law, looks as if they are in the middle of opinion competition arena. We insert
Articles 103 and 107 concerning added value. In the implementation, it is very
beneficial to national interest. Therefore, the multiplier effects of the
requirement to build smelter give 100-400 percent profit to the country. So,
the Law is pro-people, cent profit to the country. So, the Law is pro-people,
instead of pro-foreign interest, Sonny Keraf, Chairman of Work Committee on
Mineral and Coal Law, told Business News.
After the reformation, the national
political structure experienced significant changes, including the one related
the lawmaking authority. The society, government, and all stakeholders are able
to read the thinking and work paradigm of the lawmakers, including evaluating
of the quality and achievement. But, during the deliberation of the Mineral and
Coal Law, the atmosphere in the Work Committee is in the midst of political and
moral accountability. Therefore, we are confident that the opinion competition
to produce the Law which is pro-people has been very accurate.
Some significant benefits of the Law
are, amongst others, requirement for a mining company to use local content so
that local workers around the location can be absorbed maximally. And, mining
company is required to use local goods and services. So far, there are many
companies, like Freeport, who use heavy equipment from overseas, especially
from New Zealand and Australia. The provisions on local content are set forth
in Article 106 of the Law.
Besides Article 106, there are some
other Articles which refer to political and moral accountability for national
interest. The Work Committee inserted Article 147 which requires education and
training activity for the society. And, Article 113 stated that all mining
companies shall perform divestment through five-year and 10-year stages of
production. There are many Articles which are pro-people and not at all
pro-foreign interest. There is Article 124 on mining services and Article 5 on
Domestic Market Obligation (DMO) which are used simultaneously for production
control. Article 107 is about local businesses. There are also some Articles
stipulating transition plan from Operating Contract (KK) to Mining Concession
(IUP).
Legislative Body of the House of
Representative sees that the House Representative is a legislative heavy
institution. The fact is that a major part of members of the House of
Representatives (560 members) of 2009-2014 are businessmen. Only a few who have
sufficient socio-political background.
Political liberalization where
political powers are conducted through transactional approach by making money
as the main variable in politics. Open political system (closed proportional
system proposal from the Indonesian Democratic system proposal from the
Indonesian Democratic Party of Struggle (PDI-Perjuangan) in General Election
Bill was always rejected) and recruitment pattern in every political party in
facing general election significantly determines quality outcome of the House
of Representatives. Consequently, today’s politicians and leaders are
controlled by popularity and capital. Only a few who have high integrity and
adequate capacity who are popular and have large amount of capital.
Regarding controversy on Mineral and
Coal Law, the Legislative Body considers that the Law? Substance is already
ideal, and it does not favor foreign interest. On the contrary, the Legislative
Body considers that non-governmental institutions (LSM) are the ones who
frequently interfere with the Law content. While, the approach used in the
deliberation of the Mineral and Coal Law is legislation process. I suspected
the LSM who commented about the content of the Law. They have gone too far in
their interference.
BUSINESS NEWS - April 25, 2012
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