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BULLETIN

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Red Carpet Mining Entrepreneur

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  • Tip Bones

The government's step to boost economic growth by reforming various regulations that overlap and often contradict each other needs to be supported. But such deregulation efforts must not ignore the principle of justice in business opportunities, legal certainty, and their impact on the environment.

Unfortunately, this tendency is evident from the temporary draft of the omnibus law on the Employment Copyright Act, especially in the section containing regulations in the mineral and coal mining sector. This law is designed as an umbrella for various changes in mining policies so far. One of the most fundamental changes being designed is the elimination of the boundaries of exploration and mining operations. Previously, in the Mineral and Coal Law, the area of ​​metal mineral mining exploration activities was at most 25 thousand hectares. While the area of ​​one area for coal mining production operations is given a maximum of 15 thousand hectares. Areas that exceed this limit are designated as state backup areas to be managed by state-owned enterprises



Now, the omnibus plan of the law eliminates those restrictions. This is clearly contrary to the spirit of the old law to safeguard the viability of mineral and coal reserves. Restrictions are also important in preventing monopoly and maintaining a healthy business competition climate.


The draft omnibus law will also extend operating permits without an auction process and without reducing land area for giant coal mining entrepreneurs. The priority of licensing extensions for state and regional companies is also eliminated. Now there are at least seven coal companies whose permits will expire until 2025. This includes PT Arutmin Indonesia of the Bakrie group, whose permits will expire on November 1, 2020. This draft regulation also changes the duration of mining business permits, which from a maximum of 20 years to 40 years, and can be extended for another 10 years. If this plan is later passed in Senayan, the government and the House of Representatives clearly intend to pave the way for entrepreneurs to drain the bowels of the archipelago. Allowing companies to over-exploit not only damages the environment, but also threatens our own future. The government must learn from the experience of oil exploitation in the past. All the glory is now left. Indonesia itself has long been no longer an exporting country, instead becoming an oil importer. Our Constitution outlines that the earth, water and all the wealth in it must be used as much as possible for the prosperity of the people, not for the sake of the profits of a handful of mining entrepreneurs. The formulation of the omnibus law which only benefits a group of businessmen affiliated with certain political parties clearly violates the lofty ideals of the 1945 Constitution of the Republic of Indonesia.

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