Staff Of The Minister Of Energy And Mineral Resources: Four Points Of Mining Governance Towards A Sustainable Growth

Special Staff to the Minister of Energy and Mineral Resources for the Acceleration of Mineral and Coal Governance, Irwandy Arif. (Photo: Doc. Antara)

BOGOR REGENCY - Special Staff to the Minister of Energy and Mineral Resources for the Acceleration of Mineral and Coal Governance, Irwandy Arif, said that there are four important points of minerba mining governance based on natural resources capital towards sustainable growth.

"Mining governance data based on natural resources capital goes to sustainable growth. This is the most important thing in the last word, if we only manage natural resources (SDA) without going to one particular goal, especially sustainable growth", said Irwandy as quoted by Antara, Sunday, February 26.

First, he said, namely discovery (discovery) and development (developed). The findings must produce information.

Then, the development process requires a fairly safe environment for institutions so that investors are willing to invest in the required capital.

Second, state revenue through taxes and non-tax state revenue (PNBP).

This includes the design and implementation of the appropriate contract and fiscal system.

However, he said, failure could occur if there was corruption against the income.

"If this happens and this is still happening, this is corruption and there are conflicts that cause unsafe conditions so that investment is not smooth," he said.

Third, continued Irwandy, related to asset formation, and fourth, namely domestic investment.

"So, the sufficient value of the resources obtained must be included in asset formation to balance the depletion of assets that we mine but if the assets fall not to the state, it will also be in vain. Therefore, there is something called BUMD, there is something called BUMN," said Irwandy.

"This investment should be able to diversify the economy as long as the investment process occurs efficiently and generates as much ROI (return on investment) as possible," he continued.

On the same occasion, the Sub-Coordinator of Mineral and Mineral Production Planning of the Directorate General of Mineral and Coal at the Ministry of Energy and Mineral Resources, Dedi Supriyanto, revealed efforts to increase exploration and reserve resilience funds in relation to improving national mining governance.

He said there needed to be assignments, investigations, and mining research to business entities to prepare mining business permit areas (WIUPs) and encourage exploration specialist companies (junior mining companies) to apply for assignment areas or participate in WIUP auctions.

The mechanism is that the priority of the assignment area to SOEs for areas prepared by the government, private business entities can propose regions for assignment of investigations and research through applications to the government, and the government supervises investigation and research activities carried out by SOEs or private business entities in the assignment area.

Furthermore, he also explained about state control over these exploration activities.

After fulfilling the requirements in accordance with the provisions of the legislation, continued Dedi, mining business license holders (IUP)/special mining business permits (IUPK) who have completed exploration activities are guaranteed to be able to carry out production operations as a continuation of mining business activities.

Then, he said, the state also requires companies to provide mineral and coal reserve resilience funds (DKC). The DKC is used by IUP/IUPK holders to carry out continued exploration at the production operation stage, the amount of which is set annually in the work plan and budget (RKAB).