Omnibus Forestry for Miners.
The draft omnibus law is some 1,028 pages, that includes proposals to amend the Forestry Laws. The exploration and mining industries often have overlapping interests in, and near, controlled forestry areas. This article is based upon a Google English translation of the proposed changes of the mining law. These are some general observations from a long-term geologist and mining industry observer. It is expected far more qualified lawyers and industry associations may hold different and more professional views of the draft omnibus law.
This new law proposes to introduce changes in order to “ease investment requirements in the forestry sector”. Forestry Laws 41/ 1999 and its amendments, plus 18 / 2013 are to be amended in the following 106 pages. As to be expected the bulk of the articles relate to forestry sector industries, local communities and the Forestry’s management thereof. It would seem the only “ease of investment requirements” is 1) that authority over the forestry sector is now in the Central Government, and 2) there is an extensive list bad deeds that attract excessive jail terms and fines.
It would seem there is no significant change in the approach towards the mining industry. Pinjam Pakai appears to continue and accompanied by non-tax revenue plus investment funds for forest conservation. Open Pit Mining continues to be prohibited in protected forests.
Some points of interest to miners include: -
1. Settling overlap issues to be regulated by Presidential Regulation. [Mining does not necessarily take priority]
2. Bad deeds are to be addressed through the Central Government,
3. Cutting trees near creeks and waterways etc may need to be looked at more closely.
4. There is a proposed Civil Servant Investigating Officers that can arrest, detain, search and confiscate equipment. These officers are only required to coordinate supervision with state police.
5. Local communities may be involved in certain forestry activities.
6. Article 17 (of revised Law 41/1999) is specifically about mining activities (mining equipment, mine, transport, sell, or process material) that are prohibited without a permit from the Government.
The recent signing of a MOU between the Forestry & Mining ministries, that is designed to ease coordination, does not seem to be incorporated in these proposed changes of “ease of investment requirements”.