Govt to hand over authority over general mining to local administrations on Jan. 1, 2000
Friday, October 13 2000 - 03:00 AM WIB
The central government will hand over the authority over general mining operation to local administrations starting January 1, 2000, according to Director General of General Mining, Surna Tjahjadjajadiningrat.
Surna said on Thursday that his office was currently preparing regulations on the transfer of mining authority from the central government to local administrations.
"We are preparing a ministerial decree on administration operations on the general mining sector, " Surna said in his presentation before governors and regents in his office, at the Ministry of Energy and Mineral Resources.
Surna explained that the ministerial decree was to implement Article 9 of Law No. 25/2000. The ministerial decree, he said, especially governs a transitional period on the mining sector, especially on the operations of foreign-owned mining companies already in operation until Jan. 1, 2000.
Nevertheless, according to the draft decree, all contracts of works, (KK), coal mining agreement (PKP2B), local mining license (SIPD) and people's mining license (SIPR) issued before Jan. 1, 2000 will still be valid until the end of their expire dates.
"The central government and local administrations will together conduct supervision and surveillance," he said.
According to the draft ministerial decree, that contains 13 chapters, 30 articles and 14 appendixes, local administrations that are ready to assume responsibility on the mining sector could take over the licensing authority over contracts of works (KK) and PKP2B for locally-owned mining investment project. And the central government would provide helps to local administrations that are considered not ready.
As for foreign-owned mining investment projects, local administrations must consult with the House of Representatives in setting standards of contracts and procedures for investors to get the contracts of works. (*)