IAGI Urges Focus on Critical Issues in Minerba Law Revision
Jakarta – The Indonesian Association of Geologists (IAGI) has released a statement emphasizing the need for revisions to the Mining Law (UU No. 3 of 2020) to prioritize critical issues facing the national mining industry. The association highlights concerns such as sluggish investment in exploration, declining discovery rates, and the impact on downstream programs.
“Therefore, exploration activities must be encouraged by improving and accelerating the rules that support them, such as assignments, IAGI Chairman STJ Budi Santoso said in the release.
IAGI suggests that the revisions should focus on improving and accelerating regulations supporting exploration activities, including assignments. The association believes that the current rules need improvement and faster implementation.
IAGI also raised concerns regarding the complexity of the mining industry, which requires significant investment, strict adherence to regulations, and carries high risks. They suggest against involving organizations lacking core competencies, such as religious organizations and universities, directly in the industry, as this could lead to potential problems.
Instead, IAGI proposes that the government should allocate special funds from the mining industry to these organizations to be utilized according to their needs. They also suggest allowing universities to participate in managing the mining industry according to their expertise or by providing opportunities to obtain golden shares, which would position them as direct “checkers and balancers”.
Another option is to foster collaboration between universities and mining companies in research and development, particularly in technological innovation related to exploration, mining, processing, and environmental and social aspects.
IAGI also urges careful consideration of granting concessions to micro, small, and medium enterprises (UMKM), emphasizing the importance of ensuring that other parties do not exploit UMKM and that the empowerment spirit is maintained.
Finally, IAGI appreciates the government’s efforts to enhance legal certainty and investment through revisions to the Mining Law, particularly regarding guarantees on the status of space utilization and areas for mining business activities.
