Tuesday, 3 July 2012


The Indonesian Minery Community (MPI) was expecting there would be no politicizing in terms of the technical aspect of mining industry, especially in regard to the Law of Mineral and Coal Mining (Minerba no. 4 year 2009) which was a point of compromise between the executive and legislative that drained almost four years of time.

Some circles were pessimistic and doubtful about the Menerba Law, but somehow that Law had laid goods foundations for the Government to strengthen national souverignity over Indonesia’s natural resources. The Ministerial Regulation (Permen) ESDM No. 7 year 2012 had started polemics and discourse for check and balance on the execution of that Law. In accordance with PerMen ESDM No. 7 year 2012 which was amendment to Permen No. 7, 2012 it was underscored that the Government had straighten out matters regarded as inappropriate of misunderstood by stakeholders. Companies were still allowed to export raw materials provided that they play by the rule and follow the right procedures, such as Clear and Clean (C&C). In addition to that companies must propose a work plan, including future plans to build processing factories whereby to put on greater added value to products instead of just selling wealth of land.

Ministerial Regulation on Energy And Mineral Resources (ESDM) had in reality involved other Government institutions, i.e. the Ministry of Finance and the Ministry of Trade in regulating fiscal and export procedures. “MPI saw that the Regulation served as momentum fir the Government for law enforcement and nurturing” Herman A, Kusumo, Chairman of MPI told Business News (25/6).

However, in reality the existing bureaucracy in the Directorate of Misery and Mining (KEDSEM) or the Directorate of Foreign Trade had created a condition uncondusive to progress to some businesspeople. The process of permit application was rated as over procedural which sometimes made it hard for businesspeople to restart their business. “Surely such would create an unpleasant situation to businesspeople”. Herman was quoted as saying.

MPI was expecting that the process of bureaucracy at the Directorate General downward did not crate and polemic. The process of application was running slow, especially in applying for recommendation and permit from the Directorate General of Minerba and Directorate General of Foreign Trade. The situation was so ironical when the Minister of Energy and Mineral Resources Jero Wacik had ordered the bureaucratic echelons below him to serve well and fast. The Minister of ESDM Jero Wacik stated that the Government was not making it difficult for business people to follow the right procedure. “We expect that the bureaucrats would obey the Minister’s command. What we know was that the outcome of reformation would be reviewed and re-evaluated in the next three months. So there is no reason to delay or make the application process difficult” Herman remarked.

The long and dragging services of the bureaucracy was certainly disadvantageous to the Government who at the moment was enhancing pro-job and pro-poor programs toward promoting people’s welfare and to control over-exploitation of natural resources. “We will continue to work hard but the Government is expected to give complete and data and information which are clear and accurate, so the process of export verification would run quickly and properly.” Herman added.

Meanwhile the mounting threat of mass dismissals and strike by minery workers because the Government put in effect PerMen No. 7 year 2012 created an atmosphere of injustice and confusion because the Permen Regulation did not ask the company to close mines. Essentially the Regulation was only demanding reformas and control of export.

Workers dismissals were the company’s internal problem which did not necessarily happen because if only the company had long term and credible program. The mining industry sector was not supposedly solely export oriented, but at least they could make sure that the natural resources being tapped must be of maximum benefit to the people in the pursuit of good welfare.

Players of the mining industry, hand in hand with the Government, should work to prepare various policies particularly those related to the general obligation of mineral purification. In the event that the objective of the law was not met, it was always advisable to make constructive communication and consultation with the Legislative body to work on some sort of legal amendments to fine tune the management and timing factor in outing added value on minery products.

Business News - June 29, 2012



No comments: