Tuesday, September 30, 2008

Glance of Rulings in Indonesia in the Mining Sectors

Indonesia is now facing a new era of democracy. However it appears that we are in a rather dilemma situation, since it appears that everything is expensive in Indonesia including education and health treatment. Everything that you buy is expensive.

If you happen to be in the middle class, then you still have the chance to develop your money strength cash in. But if your just coming from the below class, then it really will be difficult for you to school your children as well as health treatment to maintain your health condition.

Relating to the development of legal structure, it appears that there are many products of law ruling being established and introduced, these recent years, which includes that every rulings issued by the DPR (Indonesian People’s Parliament) together with the Government shall be subject to the Court Constitution to ensure that it does not violate the more higher level of Law which is the Indonesian Constitution Act.

For instance when the new Oil and Gas was being introduced, there was a Court Constitution Decision which was launched which states that the Domestic Market Obligation which is the obligation of the Oil and Gas Contractor’s to contribute or sell its portion of Oil Entitlement to Domestic Market which words was mentioned “maximum” 25% of its Portion of Oil Share was being decided by the Court Constitution to drop the words “maximum”.

During my practice as Business Corporate Lawyer in the field of General Mining, there frequently appears to exist overlapping rulings between the inter departmental rulings among others between the Laws and Rulings of the Department of Forestry and the Department of Mining and Energy.

There often also raises overlapping Rulings between the Law Products from the Local Government and the Central Government, whereas the Local Governments Ruling sometimes are in contradictory with the Ruling form the Central Government.

Thus no coordination seems to frequently appear between the Local Government and the Central Government, and among the various Departments who sometimes are only looking from their angle and perspectives.

These situation of courses resulted confuse ness on the Mining Contractors who has been granted a Working Area by the Government to mine their minerals deposits, which part of the Mining Area is overlapping for instances with the Forestry Area.

If we faced such problems, in practice there will then be a meeting which will be held by the inter departmental officials, in the efforts to try to solve such overlapping problems.

Accordingly, before the Various Departments and Contract Area are making its rulings or granting a Forestry Rights which may be overlapping with another Activities such as Mining Activities, it is really strongly advisable that coordination between the Departments must have been prior conducted to avoid such overlapping obstacles.

Agung Supomo Suleiman – Partner of Suleiman Agung & Co http://www.sacolaw.blogspot.com

Email : agungsacolaw@telkom.net

Mobile Phone : 0816830647

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