API Provides Input on Mining Management

Jakarta.dpd.go.id – AIMING to get input related to the prospect, solutions and challenges of Indonesia’s mining sector in the era of regional autonomy, the DPD Mining committee again held a hearing (RDP) led by Budi Doku (DPD Senator from Gorontalo) by inviting a speaker, Syahrir AB., MSc, Executive Director Indonesian Mining Association (API) on Tuesday night at the Building A DPD RI, the Parliament Complex Senayan, Jakarta (13/09/11).

Syahrir began his explanation by expressing the hope, “we, from API, are also dreaming for the future management of natural resources of mines is done by the State,” he said.

Related to that, he emphasized the 3 (three) characteristics as important inputs so that to the State Agency can exist as both owners and managers of mining which are, first, able to accept high risks related to the successful exploitation of production; secondly, able to overcome the problems of exploration spending is quite large and require a fairly long time, and third, can resolve the problem of extension of the exploration that has eased in the past 10 years, particularly due to conflict with the Regions.

Djasarmen Purba, Senator DPD of Riau Islands, questioned about the need for revision of Law on the balance of the central assistance in the region which are considered unfair to the region. Responding to the question, Syahrir explained as a non-renewable resource, if it continues to be excavated, the mines will drained. Therefore, the mine-producing regions should be encouraged to manage renewable resources such as agriculture, plantation or fishing and the ways can be done by granting the Special Allocation Fund (DAK) for regions that do need help.

The Hearing of Mining Committee also discussed important issues concerning the mining in Indonesia, among others concerning the Contract of Work (SKK) related articles 171 and 169a of Law No. 4 of 2009 which considered conflicting; about royalty issues, as well as the reclamation fund.

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