Govt delays issuance of mining regulations until next year

The government has delayed the issuance of implementation regulations of the Mineral and Coal Law until next year as it still needs more time to synchronize the regulations with the mining polices in provinces, a legislator has said.

Teuku Riefky Harsya, the Chairman of the House of Representatives' Commission VII for mining, investment and industry of the House of Representatives, said in Jakarta on Monday that the government was finalizing the drafts of the regulations.

?The government has promised that the implementation regulations of the new Mining Law would be ready in March, next year. The issuance of the regulations take longer time than previously expected because the government needs to synchronize them with provincial mining policies," he said.

The new law which replaces the working contracts system in mining operations with licensing system became effective in January this year. However, the law cannot be applied until the implementation regulations are issued. According to the law, the implementation regulations should be issued a year after the endorsement of the law at the latest.

Chairman of the Indonesian Mining Association (IMA) Priyo Pribadi Soemarno said that many mining companies had temporarily halted their new investment plans because the delay in the issuance of the implementation regulations.

Mining companies which at present operates under contracts of works had to adjust their operations to the new law a year after the issuance at the latest, he said. With the absence of the implementation regulations, the companies had no choice but to temporarily halt their investment plans, Priyo added.

The delay in the issuance of the implantation regulations has affected new investment projects of several major mining companies including PT Dairi Prima Mineral, PT Meares Soputan Mining, PT Sorikmas Mining and PT Rio Tinto, he said.

Priyo said that these companies could not realize their investment plans due to the lack of clarity in the country?s mining policy. (*)