Govt evaluates implementation of C&C requirement: Minister

By Bambang Atmaja

Minister of Energy and Mineral Resources Jero Wacik said that the government is currently evaluating the implementation of the clean and clear (C&C) requirement imposed among miners holding the IUP mining business permits, following complaints among miners.

?We?re evaluating it now,? Jero told Petromindo.com on Wednesday, while adding that the C&C rule may be dropped if it creates moral hazard.

Coordinating Minister for the Economy Hatta Rajasa told Petromindo.com earlier that many miners had complained that they had been extorted for money in relation to the implementation of the C&C requirement, suggesting that the rule should be scrapped if it creates moral hazard.

Miners in the country have been required to obtain the C&C certificate to be able to get export permit. The Ministry of Energy and Mineral Resources has argued that C&C rule is important to among others resolve problem overlapping of mining permits, and for the government to be able to obtain proper production data to help ensure state revenue from the mining sector. Thousands of IUP mining business permits had been issued by cash-strapped local governments haphazardly during the mining boom era, causing among others the problem of overlapping permits, and allowing many miners to operate under the radar without paying proper taxes.

Of the 10,000 IUP permits verified by the central government last year, only about half were considered to have C&C status. To get the C&C clearance, miners need to complete all the necessary paper work including submitting proof of tax payments.

Editing by Reiner Simanjuntak