MEMR simplifies permitting procedure
Saturday, October 25 2014 - 03:29 AM WIB
The Ministry of Energy and Mineral Resources (MEMR) plans to simplify permitting procedure in the country?s coal and mineral mining sector in a bid to help cut down red tapes and inefficiency.
Director General of Mineral and Coal R. Sukhyar said Friday that there are currently 101 different types of permit/certificate in the mining sector, 56 of which are issued by the MEMR, while the remainders are either issued jointly with other ministries/government agencies or by local governments.
He said that the MEMR has cut down the number of mining permits under its authority from 56 to 26, but quickly added that the new simplified licensing procedure would only be effective following the appointment of a new minister by the new government of President Joko Widodo.
Sukhyar hopes that other ministries or government agencies to also take similar bureaucratic reform agenda in a bid to help increase investment in the sector as industry players have long complained about the lengthy bureaucratic procedure in obtaining mining permit in the country.
Under the current system, miners have to obtain five different types of permit to carry out exploration program. Under the new simplified procedure, only one type of permit, which is the so-called IUP exploration permit, is required.
The same also applies for entering the production stage, only one type of permit is required under the new system: IUP production operation permit.
Editing by Reiner Simanjuntak