JAKARTA - Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia together with Commission XII agreed that the approval of the mining Work Plan and Budget (RKAB) would be carried out annually.
"Starting today, by saying bismillahirrahmanirrahim, we have received a proposal from Commission XII for us to make RKAB per year," said Bahlil as quoted by ANTARA, Wednesday, July 2.
In accordance with Government Regulation (PP) Number 25 of 2024 concerning Procedures for the Preparation, Submission, and Press for the Purpose of Work Plans and Budgets and Procedures for Reporting on the Implementation of Mineral and Coal Mining Business Activities, mining companies can apply for RKAB to produce for three years.
The policy initially aimed at providing business certainty for mining companies, as well as simplifying the administrative process without reducing the substance in the evaluation process.
However, Bahlil assessed that the granting of RKAB approval within three years caused mining production activities to become difficult to match the world's demand.
"As a result of the RKAB jor-joran that we did together, it was the fruit that we couldn't control between coal production and world demand. What happened? The price fell," said Bahlil.
Therefore, Bahlil approved the proposal of Commission XII, which is in charge of energy and mineral resources (ESDM), to change the granting of RKAB approval from a range of 3 years to a year.
Following the approval, Bahlil plans to cut RKAB from various mining companies that have applied for production for three years.
"I'm sorry, with RKAB per year, we will cut the RKAB. So, if tomorrow there are businessmen who come complaining to the DPR, why is the RKAB cut, don't let the wrong (throw) into the ESDM again," he said.
The proposal was originally submitted by the Deputy Chairman of Commission XII of the DPR, Bambang Haryadi, who assessed that Indonesia's mining production was excessive, causing the price of mining commodities to fall.
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Bambang proposed to the Ministry of Energy and Mineral Resources to change the granting of RKAB approval from three years to one year.
The proposal was also approved in a working meeting between the Minister of Energy and Mineral Resources and Commission XII of the DPR.
"Commission XII of the DPR RI agrees with the Minister of Energy and Mineral Resources to evaluate the approval of the RKAB of mining companies which were originally given for a period of 3 years to 1 year in order to maintain the stability of supply and demand," said Chairman of Commission XII DPR Bambang Patijaya.
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