Bisnis.com reported that, the government plans to announce 700 mining permits with "clean and clear" status without overlapping on other permit holders in the near future so all of the permits are expected to be complete at the end of 2012.

Since the issue of Mining Act, the Ministry of Energy and Mining Directorate General of Mineral Resources (ESDM) until mid-2011 there were 9,662 mining permits (IUP)issued by the local governments.

Of the total IUP, only 3,778 permits have clean and clear status. Clean and clear status shows that the mining areas have complete documents and no overlapping areas.

The remaining 5,884 permits are problematic. In fact, there are expected to be significant unclear permits since the licensing authorities are held by the local governments. This is because regional heads or regents neglect to manage the matter.

A Bisnis source said that in one area of East Kalimantan, to take power of attorney over the adjustment of mining permit status into exploration permit about IDR 250 million (approximately US$ 27,700)  is needed, while the 'cost' for a production permit ranges between IDR 500 million and IDR 1 billion (approximately US$ 55,401 - US$ 110,803).

It is caused by the unprofessional regents who gave permits to more than one party," said Thamrin Sihite, Director General of Mining and Mineral Resources
Ministry last weekend.

The Directorate General of Mineral and Coal has assigned the University of Indonesia (UI) to resolve the issue. The appointment has caused internal resistance since the verification which was actually conducted by the Directorate of Commercial Directorate of Coal and Mineral has to be taken over by an Independent Team from UI.

The completion of the mining permit verification, Thamrin said, is expected to boost state revenues from the mining sector.

"With reconciliation, the mining permit will be more orderly. In addition, the permit holder who usually pays a dividend to the regional government, will now be expected to pay the central government. The central government has also conducted socialization to the local government so that the payment of non-tax state revenues can be deposited to central. Then, it will be distributed to the local government,"he said.

Besides completing the reconciliation of mining permit, the government also continues to fix the mining sector. President Susilo Bambang Yudhoyono has formed an evaluation team to adjust working contract (KK) and the agreement of the coal mining business (PKP2B) in accordance with Presidential Decree No.3/2012.

The team is composed of the Coordinating Minister for Economic Affairs Hatta Rajasa as the chairman, the Minister of ESDM Jero Wacik as Chief Executive and Director General of Mineral and Coal Thamrin Sihite as the secretary.

The evaluation team members consists of the Minister of Finance, Minister of Home Affairs, Minister of Justice and Human Rights, Minister of Industry, Minister of Trade, Minister of Forestry, Minister of SOEs, the Cabinet Secretary, the Attorney General, Chief of Financial Development Supervisory Board (BPKP), Head of National Land Agency (BPN), and the Head of Investment Coordinating Board (BKPM).
Source : Bisnis.com (By:Vega Aulia Pradipta) / Mitrais