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Jakarta Post

Overhaul planned for mining

  • Amahl S. Azwar

    The Jakarta Post

Jakarta   /   Tue, April 2 2013   /  09:35 am

Indonesia is mulling a game-changing policy to prevent local administrations from issuing excess and overlapping mining permits by expanding the central government’s authority to grant concessions.

The Energy and Mineral Resources Ministry’s director general for minerals and coal, Thamrin Sihite, said on Monday that the plan called for permits only to be issued through a tender process.

“We’re basically adopting a similar mechanism that is applied in the oil and gas sector, in which blocks are openly offered by the government to prospective bidders,” Thamrin said. “We’re working to finish outlining mining zones that will be offered to potential investors by the end of this year.”

The rationale behind the policy stems from messy management of permits by local governments that has caused legal uncertainty for investors due to the overlap and to over-...