Awaiting for Draft Government Regulations


Awaiting for Draft Government Regulations

                Miners are anxiously waiting for access to the draft of government regulations of the new mining law. Under the Law No. 3 of 2020 (new mining law), it is stipulated that implementing regulations must be completed at the latest one year after the enactment of the Law. Technically the government has at least 8 months leaft to issue the regulations. But the Ministry of Energy and Mineral Resources (MoEMR) set an ambigious target to finalize the regulations within 6 months after the Law enacted, or in this case December 2020. There is a speculation that the government is even more aggressive in planning to complete the draft regulations before November 2020. Regardless of the timeline, access to get the draft is somewhat a “luxury” for miners as the government keeps the access for the draft tightly.

                According to the government, there will be 3 government regulation (PP) to issued as the implementing regulations of the New Mining Law, which are PP on mineral and coal business acvity, PP on mining area, and PP on reclamation and post mining. Officials at the Ministry have been working intensively to prepare the draft regulations. The first draft of the three PPs have been discussed or consulted with relevant government institutions including the Ministry of Environment and Forestry, the Ministry of Home Affairs, the Ministry of Finance, and the Ministry of Law and Human Rights. After the government (all institutions) have agreed on the draft, then government would invite stakeholders in public consultation.

                With the deadline is approaching, miners are hoping the government should distribute the draft quickly. Some media have reported to get access of the unofficial draft, which prompt industry to look for the first draft to study on possible crucial provisions. Draft PP on mining business activity is the draft that industry has been looking for as it will have potential impact on the industry. But other PP including regulation on reclamation and post mining is very important as well. Meanwhile, detail on the division of authority between central and regional government is something that many players especially holder of IUPs (and IUPKs) are very keen.

                Involvement of the stakeholders especially miners is very important as the effectiveness of the regulation should be the key of the success of the Mining Law. Miners including APBI are hoping the get an early access of the draft to allow industry to study the provisions in the draft. Thus in view of this situation, we expect the government to set series of meetings with industry and professional associations to discuss the 3 draft comprehensively. The meetings should not be like a business as usual public consultations on regulation as the draft discussed usually treated as “nearly final drafts” so the consultations mostly deemed as some kind of “formality”. Giving early access for the industry to review the draft regulations and provide constructive feedback should be considered.


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