Revenue Watch Institute - Seminar on Extractive Industry Governance at the Local Level: Challenge and Opportunities; Jakarta, May 22-23, 2012

1. Local Mining Regulations -
Comparison and Analysis
Muh. Rasyid Ridla A
Kanti
PATTIRO Institute
Generic

2. THE REGULATORY REFERENCES
1. The basis of decentralization of mining license
2. Mining governance
3. Relation to land use
4. Environmental management
5. Revenue Collection and Management
Rapid changes in legislation related to decentralization in
the last decade caused a quite significant difference
depending on the time of issuing the mining regulations.

3. REFERENCES OF THE REGENCY MINING REGULATION
Reference
N
Issues Perda Kab. Kutai Barat Perda Kab. Barito Timur Perda Kab. Tanah Bumbu Perda Kab. Belu Perda Kab. Timor
o
15/2003 3/2004 10/2007 9/2010 Tengah Utara 2011
1 Mining UU 11/1967 tentang Ketentuan –Ketentuan Pokok Pertambangan UU 4/2009 tentang Pertambangan
. Provisions Mineral dan Batubara
2 Relation to UU 24/1992 - UU 26/2007 tentang Penataan Ruang
. spatial tentang Penataan
plan/land use Ruang
- UU 5/1960 tentang Peraturan Dasar Pokok-Pokok Agraria
3 Environmental UU 23/1997 tentang Pengelolaan Lingkungan Hidup UU 32/2009 tentang Perlindungan
. Management dan Pengelolaan Lingkungan Hidup
4 Licensing UU 22/1999 tentang Pemerintahan UU 32/2004 tentang Pemerintahan Daerah
. Decentralizatio Daerah
n Basis
5 Revenue UU 25/1999 tentang Perimbangan UU 33/2004 tentang Perimbangan Keuangan antara Pusat
. collection Keuangan antara Pusat dan Daerah dan Daerah
UU 18/1997 ttg - UU 28/2009 tentang Pajak Daerah
Pajak Daerah & dan Retribusi Daerah
Retribusi Daerah
sebagaimana telah
diubah dgn UU
34/2000

4. REFERENCES OF THE PROVINCIAL MINING REGULATIONS
Acuan
N
Perihal/Isu Perda Prov. Kalimantan Selatan
o Perda Prov. Kalimantan Tengah 8/2002
2/2009
1. Mining Provisions UU 11/1967 tentang Ketentuan –Ketentuan Pokok Pertambangan
PP 27/1980 tentang Penggolongan Bahan-bahan Galian
PP 75/2001 tentang Perubahan Kedua atas PP 32/1969 tentang Pelaksanaan UU
11/1967
2. Relation to spatial plan/land use - UU 26/2007 tentang Penataan
Ruang
UU 5/1960 tentang Peraturan Dasar Pokok-Pokok Agraria
3. Environmental Management UU 23/1997 tentang Pengelolaan Lingkungan Hidup
PP 27/1999 tentang AMDAL
4. Licensing Decentralization Basis UU 22/1999 tentang Pemerintahan Daerah UU 32/2004 tentang Pemerintahan
Daerah sebagaimana telah diubah
beberapa kali terakhir dengan UU
12/2008
5. Revenue collection - UU 33/2004 tentang Perimbangan
Keuangan antara Pusat dan Daerah
UU 18/1997 tentang Pajak Daerah dan Retribusi Daerah sebagaimana telah
diubah dengan UU 34/2000

5. MINING LICENSE SYSTEM
• Mining governance pattern;
• The procedures of mining activity licenses
• The procedure and requirements of license application;
• How if there are more than one license application in one
area.

6. REVENUE COLLECTION
AND REVENUE MANAGEMENT MECHANISM
On revenue management, there is no local regulations that
explain the use of revenue for local development.
- The Barito Timur Regency detailed the revenue distribution
in percentage.
- The North Central Timor detailed revenue distribution in
nominal terms, and demands community development.

7. ENVIRONMENTAL ISSUES
- Local Regulations in provincial level detailed procedures of environmental
management according to the Laws and Regulations.
- In regency level, only Tanah Bumbu regency’s local regulations detailed the
procedures of environmental management according to the Laws and Regulations.
- The Local Regulations of Barito Timur and North Central Timor regencies explained
the reclamations as one of the environmental management, but did not explain the
procedures according to the laws and regulations.
- The Local Regulations of Belu regency that is quite new, only explained that mining
companies are obliged to manage the environment together with the local governments.

8. PATTERN OF THE REGENCY MINING REGULATIONS
Perda Kutai Barat Perda Barito Timur Perda Tanah Bumbu Perda Belu Perda Timor Tengah Utara
Issues
15/2003 3/2004 10/2007 9/2010 2011
Regulatory Refer to all regulations applied in the year of issuing, related to important issues
References
Mining Mention but not regulate KK and Mention but not Not regulate KK Not regulate KK and
Licensing regulate KK and PKP2B; - detailed regulate KK and and PKP2B; PKP2B;
System PKP2B; in the Perda PKP2B; -- - Regent -regent regulation
- Regent decree -regent regulation
decree/regulation
Revenue No explanation Regulate coll & Only explains No explanation Regulate coll &
collection and management; revenue collection management;
revenue distribution distribution nominal, not
management percentage, not local development
local development
Environmental No explanation Explain Explains procedures No explanation Explain reclamation, not
management of procedures reclamation, not in detail according of procedures explain procedures
issues explain procedures to UU and PP according to UU and PP
according to UU
and PP

9. PATTERN OF THE PROVINCIAL MINING REGULATIONS
Issues Perda Kalimantan Tengah 8/2002 Perda Kalimantan Selatan 2/2009
Regulatory References Refer to all regulations applied in Refer to all regulations applied in
the year of issuing, related to the year of issuing, related to
important issues important issues
Mining Licensing System Not regulate KK & PKP2B; regulate KK & PKP2B; licensing
licensing procedures regulated by procedures regulated by
Governoral Decree Governoral Decree
Revenue collection and revenue No explanation No explanation
management
Environmental management issues Explaining quite detailed Explaining quite detailed
environmental management environmental management
procedures in accordance with procedures in accordance with
UU and PP UU and PP

10. ENJOY YOUR DISCUSSIONS