Provinces to handle mining permit beginning November

The central government will gradually transfer the authority to issue mining permits to provincial administration beginning November ahead of the implementation of the autonomy law, which will be effective next year.

Budhi Sulistio, the spokesman for the Ministry of Mines and Energy, said in Jakarta on Thursday that the transfer of the mining authority will, in the first stage, be given to provinces that have showed readiness to resume the jobs.

He did not name which provinces that will be selected to become the first to receive the mining authorities. But he hinted that provinces such as East Kalimantan had met the qualification to be given a full authority to manage and develop its own natural resources.

"The mining is the most prepared sector to implement the autonomy law and that's why we will hand over the authority to certain provinces beginning November this year," he was quoted as saying by Neraca.

He said that the provinces that had been given a full authority to manage and develop their mineral resources would be allowed to issue all kinds of mining permits to investors.

Under the new policy, the provincial administrations, which at present are allowed only to issue mining permits to companies operating in the C-Category mineral products such as stones, granite and sand, will be given the authority to issue mining permits in all mining operations both to local and foreign investors.

At present, the issuance of mining rights, a permit given to local companies and contracts of works, a permit issued to foreign investors, are handled solely by the ministry of mines and energy.

Budhi said that the contracts of works will only require the approval of the provincial legislative council, instead of the House of Representatives l (DPR). (*)