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    The Spirit of Downstream Sector and Mineral, Mining and Coal (Minerba) Mine Should be Maintained In Law Revision

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    BANDUNG-After appointed as Minister and Vice Minister of EMR by President Jokowi, Ignatius Jonan and Archandra Tahar was faced with a huge task, particularly to hasten the discussion of revision of Law No. 4 of 2009 Mineral, Mining, and Coal (Mining) along with the House of Representative.

    In response, the House of Representatives Commission VII member, Tamsil Linrung, judging the spirit of revision initiative of the House of Representatives will still maintain the downstream sector and coal mining. This was in line with the government's commitment to optimize revenue in mineral, mining and coal (minerba) sectors, so the problems of downstream mine becomes urgent. This is disclosed in the Tamsil jabarprov.go.id release received on Thursday (20/10).

    The spirit of the downstream sector and coal mining, said Tamsil, still pursued through the construction of the smelter obligation for mining companies operating in Indonesia. In the Mining Law Transitional Provisions Article 170 reads: "Work Contract Holder referred to in 169 own production must refining referred to in Article 103 paragraph (1) no later than 5 (five) years since the Act The promulgation ".

    Of these provisions it is clear that mining companies are required perform purification in the country. In other words, the door to exports crude minerals (ore) and mine concentrate are not allowed anymore. "Relaxation of export policy concentrates for several mining companies which has not built a smelter, contrary to the Mining Law, as policy given in PT. Freeport Indonesia has run out license per August 8, 2016, and published a new permit until January 11, 2017.

    It's not healthy for mining investment climate in Indonesia, ". Therefore, Tamsil assess the government should be consistent and respect the attempt some holders of Mining Business License (IUP) and Operating License Special Mining (IUPK) which has begun their smelter construction. Plus, the government issues re-opening export for crude minerals (ore).

    "In the Constitution, it has been clearly outlined that natural resources in Indonesia is dominated by the State, and that their use for the greater welfare of the people. Therefore, the House of Representative will continue to guard, because somehow with their obligation to build the smelter, then there will be more benefits that we feel, opening up new jobs and the prevalence of economic growth, "said Tamsil.

    According to Tamsil, the obligation of establishment smelter has double impact (multiply effect) on many things, for example, the opening of new jobs, reduction of unemployment, equitable economic growth, particularly
    in the mining industry area eastern part of Indonesia that are often considered lagged behind other regions.

    The mining company has not built a smelter, because no certainty that the company's contract extension and availability of electricity. However, Tamsil rates it can not be used as strong basis to always conduct policy relaxation.

    "In fact, a number of mining companies still do smelter construction in the middle of the constraints that exist because the full consciousness of obligation, "said Tamsil.

    It is known, according to data from the Ministry of Energy and Human Resources, as of early June 2016 had built 23 smelter and other four will be completed until the end of 2016. The state must position itself as a regulator which has the power to control each policy issued. If a mining firm have difficulty in establish a smelter, according to the Mining Law, may divert concentrate held at other smelters that are already running, according to provisions in Article 103 paragraph 2. "No more open ore export opportunities and concentrate, "said Tamsil.

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