Directorate General of Mining Simplify Mining Activities Regulations

By : Hariyanto And Aldo Bella Putra | Tuesday, February 13 2018 - 20:30 IWST

Kapal pengangkut batu bara (ist)
Kapal pengangkut batu bara (ist)

INDUSTRY.co.id - Jakarta - The Directorate General of Minerals and Coal at the Ministry of Energy and Mineral Resources simplified six regulations into one regulation of mineral and coal mining business activities to increase investment in this sector.

In a press conference at the Ministry of Energy and Mineral Resources in Jakarta on Monday (12/2/2018), Director General of Minerba Bambang Gatot Ariyono explained that there are at least five ministerial regulations (Permen) and one ministerial decree (Kepmen) of ESDM simplified into one regulation, on Procedures for Provision of Regions, Licensing and Reporting on Mining Business Activities.

"Almost 50 very important items that we will eliminate in order to simplify, accelerate and simplify the licensing service," said Bambang.

Bambang explained that the new candy plan will remove various licenses, such as Registered Certificate (SKT), Processing or Refining Principle Permit, IUP, IUPK and IUJP foreign labor recommendation, Certification of Technical and Certificate of "Clear and Clear".

According to him, before the simplification of this regulation, many licenses are independent and separate. Therefore, the Directorate General of Mineral and Coal will only obtain an agreement through the Draft of Activities and Budget (RKAB) by the licensing company.

The RKAB can be used to manage licensing, such as permission to use explosives, use of foreign labor, to purchase equipment plan.

Previously to obtain permission to use explosives, the mining company needed to take care of the permit to the Police and therefore needed a recommendation from the Ministry of Energy and Mineral Resources. Later, with RKAB, recommendations are no longer needed; the company only needs to show the RKAB document.

"Now we only get one, the approval of RKAB the RKAB approval covers everything that is decided, in terms of technical and administrative matters in order to permit," Bambang said as quoted by Antara.

The ESDM Ministry revoked 22 regulations that were considered irrelevant and hampered the investment process, from 51 regulations simplified to only 29 regulations, six of them in the Minerba sector.

ESDM Minister Ignasius Jonan said the revocation of this regulation to increase the flexibility of investment. The Ministry of Energy and Mineral Resources and Energy and Mineral Resources (SKK Migas) this year have an investment plan of 50 billion US dollars, or double the realization of total investment in the energy and mineral resources sector in 2017, which amounts to about 26 billion US dollars.

The six regulations that will be merged and simplified, namely ESDM 12/2011 Regulation on Procedures for Determination of WUP and Mining Area Information System of Minerba; Ministry of Energy and Mineral Resources 25/2016 amendment to the Ministerial Regulation of ESDM 12/2011; Ministerial Regulation 28/2017 on Procedures for Auction of WIUP and WIUPK on Mining Business Activities of Metals and Coal Minerals.

Furthermore, the Minister of Energy and Mineral Resources Regulation 34/2017 on Mining Licenses, Minister of Energy and Mineral Resources 15/2017 on Procedure of IUPK Production Operation as a Continuation of KK or PKP2B Operations and Ministerial Decree of ESDM 1453/2000 on Technical Guidance of Administration of Governmental Task of Public Mining.

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