EXCLUSIVE: Regions "more agreeable" to gradual transfer of mining rights: official
Tuesday, December 5 2000 - 01:00 PM WIB
The ministry of energy and mineral resources concluded that the regions, realizing their inexperience, lack of skilled human resources and capable organization, had been more agreeable to the proposal for the gradual transfer of mining rights from the central government to the regions.
Director of mining venture supervision Simon Sembiring said the ministry had drawn such a conclusion based on the recent visits of the ministerial teams to 14 provinces.
The ministry sent 150 officials to the provinces to provide a training program on mining and energy affairs from Nov. 20 and 24. The teams failed to hold meeting with officials of the Riau province following a delay request from the provincial administration and with officials of the Maluku province due to security concerns.
"During the training programs, it was clear that the region's officials realized they have not yet fully prepared for the decentralization. They appeared to be agreeable to the idea of the central government transferring mining rights to the province in phases," Simon said during a meeting with the Indonesian Mining Association (IMA) on Monday.
Present at the meeting were among others Minister of Energy and Mineral Resources Purnomo Yusgiantoro and several senior officials of the ministry.
At the meeting, the ministry's head of legal bureau Nurwinakun said based on the findings of the ministry's team, the ministry was preparing a draft presidential decree to authorize the central government to gradually transfer mining rights to the regions.
The government planned to implement the Autonomy Law No. 22/1999 on Jan. 1, 2001, under which the regions will have rights to manage their own natural resources, including their mineral resources.
The ministry has long proposed a gradual transfer of the mining rights following concerns of investors that the regions were not yet capable to manage mining industry.
Several governors and regents, however, have voiced opposition to the gradual transfer idea.
Purnomo said the ministry would invite all stakeholders of mining industry across the country, including regional officials, community leaders, to a meeting before the end of the year to discuss various issues, including unacceptable practices.
For instance, Purnomo said, during the meeting, the ministry will call on the regions not to introduce new levies, which are in conflict with mining contracts. (Godang/Alex)