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
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