Minister suggests to drop C&C rule if it creates moral hazard

By Bambang Atmaja

Coordinating Minister for the Economy Hatta Rajasa suggested for the government to drop the so-called clear and clean (C&C) rule in the mining sector if it creates moral hazard.

Hatta said that there were many miners who complained that they have faced extortion in relation to fulfilling the C&C requirement.

?So, if this C&C policy creates moral hazard, it should be removed,? he said Friday. He added that as the C&C policy among others aimed at ensure proper revenue for the state from the mining sector, the government could instead assign the custom office to better control the state revenue from mineral ores export, and the tax office in terms of revenue from the taxes.

The government since last year has required miners to obtain the C&C status to get export permit in a bid to secure state revenue from the mining sector, which accounts for about 12 percent of the country?s GDP. Among of the requirements that must be met by the miners is to get central government approval for their ?problematic? mining permits issued by local governments duing the past mining boom era, which had among others created land title conflicts, threat to environment and social conflict.

Editing by Reiner Simanjuntak