New Mining Law, the Most Important Success of Mineral and Coal Subsector in 2020

MINISTRY OF ENERGY AND MINERAL RESOURCES

PRESS RELEASE

NUMBER: 020.Pers/04/SJI/2021

Date: 15 January 2021

New Mining Law, the Most Important Success of Mineral and Coal Subsector in 2020

Law Number 3 of 2020 on Amendment to Law Number 4 of 2009 on Mineral and Coal Mining is the most important success made by Directorate General of Mineral and Coal of Indonesian Ministry of Energy and Mineral Resources in 2020.

"During the history of national mineral and coal mining management, the most important legal basis that we have, our biggest success is that now we have Law Number 3 of 2020, which starts to apply from June 10, 2020. This law is a progress, it's vital to improve the management of mineral and coal mining," said Director General of Mineral and Coal, Ridwan Djamaluddin, at the virtual Press Conference on Performance Report of 2020, Work Program for 2021, and Strategic Issues of the Mineral and Coal Subsector on Friday (15/1).

Ridwan went on to say that there are four important aspects of the new law. One, the law improves national mining management; two, it is in favor of national interest; three, it has an environmentally friendly awareness; and four, the law gives legal certainty and facilitates investment.

The Indonesian Government is preparing three draft government regulations (RPP) to implement the Mining Law of 2020, namely draft government regulations on Implementation of Mining Business Activities, on Mining Areas, and on the Fostering and Monitoring as well as Reclamation and Post-Mining in the Administration of Mining Business Management. The government is also formulating a draft presidential regulation (RPerpres) on Delegation of Authority in Mineral and Coal Management to Provincial Government.

"We'll finish these in the not-too-distant future," Ridwan asserted.

Amid the Covid-19 pandemic, DG Mineral and Coal could still meet the targeted non-tax state revenue (PNBP). In 2020, it generated non-tax revenue of Rp 34.6 trillion or 110.15 percent of target Rp 31.41 trillion.

"In 2021, we've set a target of Rp 39.1 trillion of non-tax state revenue," imbuh Ridwan.

On the contrary, investment in the mineral and coal subsector in 2020 missed the target. Realized investment was recorded at USD 4.015 billion, below the target USD 7.749 billion. For 2021, mineral and coal investment is targeted at USD5.984 billion.

"Overall, the decline had been caused by the Covid-19 pandemic. The difficulties were related to operations, personnel mobilization, equipment, and other investment-related activities. However, in 2021 we've set an investment target of close to USD 6 billion. This is an enormous task, a challenging duty that we have to perform together, to recover national economy and improve economic growth," Ridwan said. (IY)

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