KADIN IN OPPOSITION AGAINST GOVERNMENT AFTER SUPREME COURT OF JUSTICE'S VERDICT

The Indonesian Chamber of Commerce (KA­DIN) was in opposition against the Government i.e. the Ministry of Energy and Mineral Resources in relation to the verdict of the Supreme Court of justice (MA) RI no: 39/P.PTS/XII/2012. The impact of this Regulation according to KADIN was positive for exporters of mining products. The Verdict approved Request for Review of Ministerial Regulation (Permen) no. 7/2012 The Permen was on increase of added value of min­eral products, and processing and purification of min­eral products. KADIN admitted that before requesting the MA Court there was already discussions with the Ministry of Mineral Resources. “We have set forth various issues including distribution of export quota but the Ministry seemed to be inclined to “open their own business”, “buy materials for themselves” and “sell for themselves”. Supposedly there was already SUCCOFINDO as surveyor so the Ministry needed not to manage quota”. Natsir Mansyur, Vice Chairman of Trading, Distribution and Logistics of KADIN dis­closed to Business News (11/1).

KADIN remained to be in wait and see posi­tion about Government’s level of obedience to MSA’s verdict. The situation was on account of hide and seek game between the Government and KADIN” Let's see if the Government comply to MA’s verdict.

The indication of KADIN playing Hide and Seek just had to be exposed by KADIN to the press. The verdict had been released for long by the Govern­ment. After observing the situation afield, KADIN felt it necessary to expose MA’s verdict. “I have proved, there is a copy of the original document; but we ob­tained it, by hard struggle. The copy was once hidden. Officials of the Ministry demanded that we show the original copy. The argument was that the only thing available was Command, not copy of verdict. We believe that the MA verdict was a blow in the face to the Government.

­The MA verdict had its impact on Clear and Clean (CNC) until permit and quota for export was obtained. The verdict burdened exporters of 14 pri­mary products including nickel bauxite, iron ore, tin, etc., “The MA verdict is not an ordinary verdict; but of the Ministry, but if the Ministry is stubborn and make rules of their own...it's up to them”.

The MA Verdict included also the point on provincial authority, especially on development zones. The way it had been, The Government always make decisions without coordinating with compa­nies. The result was that businesspeople had to bear great amount of loss: export activities stopped, and unemployment was at large. “Businesspeople had to propose for CNC, IUP etc. the process is long and winding. Just a simple example, even my own CNC is not released yet just because of my Tax ID number (NPWP) problem while my business permit had passed the Coordinating Board of Investment (BKPM)”.

There were 14 primary commodities which were formerly rejected by Pemen no 7/2012. Businessmen lost because they already had built infra structure projects like roads, harbors etc. The heavy equipments invested also increased loss. “By the time they are ready to invest, suddenly rules came up. Ex­port was controlled, while exporters don't get any quota. The bureaucracy at the Ministry is also compli­cated, troubling business people”.

Regulation no. 7/2012 was an unfair policy, and an act that brought moral hazard, because distribution of export quota was not based on fair judgment. The Permen only advantaged big investors. This drove the businesspeople, especially the Indone­sian Nickel Association (ANI) and the Association of Indonesian Regencies Governments (APKASI) to re­quest for review of the Permen. "About quota, in fact there is on independent body called Surveyor, i.e. Surveyor Indonesia and Succolindo. Surveyors calcu­lation is fairer, because they are independent bodies. As with export, it is in the domain of the Ministry of Trade, but strangely the Ministry of Energy also laid hands on export”.

MA' verdict heads been released nationwide, so KADIN saw that green light was on for export. The Provincial and Regency Government had been in­formed about the impel of MA verdict. “We keep co­ordinating" Now export activities may start to begin, because KADIN had released copy of verdict to vari­ous Government institutions including the Customs Dept of the Ministry of Finance. All at once KADIN had released the MA verdict; there is no problem of export activities afield. If customs officials prohibit export delivery they can be brought to court”.

Business News - January 16,2013