Govt selects East Kalimantan's regencies for mining pilot projects

The government has selected the Kutai Kartanegara and East Kutai regencies in East Kalimantan for pilot projects to manage mining industry in accordance with the regional autonomy laws.

Director general of geology and mineral resources Wimpy S. Tjetjep said Wednesday the government expected the regencies to become a model for other regencies in managing the mining industry in their respective areas in accordance with the autonomy laws.

"In the beginning, we shall build a information system that will enable both regencies to connect online with the ministry.

"We are looking for funds to carry out the project," Wimpy told Petromindo.Com.

Earlier, Minister of Energy and Mineral Resources Purnomo Yusgiantoro said the plan of carrying out the pilot project was part of the government's efforts to bring the implementation of the autonomy laws, especially in the mining sector, into success.

The pilot projects aim "to assist regional governments in carrying out effective mining titles administration for mineral data handling, general mining permit and contract handling, and mine safety and environmental inspection capabilities," Purnomo said Tuesday during a seminar titled "Regionalization and Resource Management".

The seminar was organized by consultancy firm Castle Asia.

Under the autonomy laws, which came into force early this year, the regions have the rights to manage their natural resources and take a larger share of revenue from the development of their natural resources.

Investors however doubt the regions' capability to manage their natural resources given their lack of skilled human resources and modern infrastructure.

Through the pilot projects, the regions were expected to gradually take over the central government's skills of managing their natural resources, Purnomo said.

Purnomo further said that the central government had also established a task force to help the regional authorities in implementing appropriate mining management.

"Whenever necessary, the team will organize forums to facilitate communications and problem solving between stakeholders, including central and regional governments, Regional Autonomy Agency, industry, local community and NGOs," he said.

Another important step taken by the ministry was making a new mining law to replace the Mining Law No. 11/1967.

Purnomo said the Mining Law No. 11/1967 had been internationally acknowledged as one of the best mining laws across the world and had been very effectively implemented over the past thirty years.

But, he said, the government was determined to change the law with a new one that is able to address contemporary issues in the country's mining sector, including decentralization, human rights, environmental protection, community development.

Purnomo said the draft mining law was now in the phase of evaluation by interrelated agencies. (Godang)