ARTISANAL MINING ISSUES IN INDONESIA; Lessons Learned for ASEAN ISKANDAR ZULKARNAIN INDONESIAN INSTITUTE OF SCIENCES JW Marriot Hotel, August 20, 2014
LEGAL PERSPECTIVE
1. LAW No. 11, 1967 about CertainFes of Mining Principles CHAPTER I, Paragraph 2, n. ArFsanal Mining ( People Mining ): People mining is a mining of deposits of group a, b and c as explained in paragraph 3, arfcle 1 that are done by local people in small scale or in a group using simple tools/technology to finance their own lives.
1. LAW No. 11, 1967 about CertainFes of Mining Principles (CHAPTER III, Paragraph 11) People Mining (P M) (1) Goal of the People Mining is to give opportunity to the local people to carry on mining deposit in parfcipafon on country development in mining sector under Government supervisor. (2) People Mining can be done by the local people who having mining licenses or Contracts of PM (PML). (3) CertainFes of People Mining and procedure and condifons to get the contracts of People Mining has been ruled by Government RegulaFon.
2. Law No. 4, 2009 (Minerba Law) subftute for Law No. 11, 1967 CHAPTER I, Paragraph 1, 10. People Mining license called PML (IPR), is a permission to carry on mining acfvifes in a people mining region with limited wide area and investment. 32. The People Mining Region, so called WPR, is part of Mining Region (WP) where people mining acfvifes is carried on.
2. Law No. 4, 2009 (Minerba Law) subftute for Law No. 11, 1967 CHAPTER V, PART THREE, People Mining Region Paragraph 20 People Mining AcFviFes are carried on in a People Mining Region (WPR). Paragraph 21 WPR as menfoned in Paragraph 20 is decided by Head of Regency/Mayor through consultafon with Local Parlement.
2. Law No. 4, 2009 (Minerba Law) subftute for Law No. 11, 1967 CHAPTER V, Part Three, People Mining Region (WPR) Paragraph 22 Criteria to define a WPR are as follow: a. Having secondary mineral deposits in the river and/or between two sides of the river; b. Having primary metal deposits or coal with max. depth of 25 meters; c. Terrace deposits, flood plain and paleoriver deposits; d. Maximum wide of a WPR is 25 hectares; e. MenFoning the types of commodifes that will be mined; and/ or f. A region or an area where mining by people already has been done at least since 15 years.
2. Law No. 4, 2009 (Minerba Law) subftute for Law No. 11, 1967 CHAPTER V, Part Three, People Mining Region (WPR) Paragraph 23 In order to declare a WPR as menfoned in Paragraph 21, Head of Regency/Mayor must announce about the WPR Plan openly to local people; Paragraph 24 The region where people have mined but not yet decided as a WPR has priority to be declared as WPR; Paragraph 26 Further CertainFes including criteria and mechanism for deciding a WPR, as menfoned in Paragraph 22 and Pragraph 23, will be ruled through Local RegulaFon.
FACTS IN THE FIELD
ALMOST NO PEOPLE MINING IN INDONESIA!!!! According to Law, the People Mining acfvifes are legal acfvifes having license or permission. But in fact, almost all of mining acfvifes have been done by people nowadays are without permission or illegal This acfvity is called more properly as people acfvifes in mining than arfsanal mining or people mining (well known as Illegal Miners or IM).
Features of the local, illegal miners: STATE OF THE ART Policy Aspects Modality Aspects Institutional Aspects Technology/Env. Aspects Not accomodated logically by Law No. 04, 2009, PP(22/10;23/10), PerMen 01P/86 Ignored and handled repressively letting policy by government Low skilled human resources Weak in socio-economy Having simple perception No structured organization No economy organization Working in small group, emotional based Quarrying technic unsafe, unhealthy Extraction method inefficient No waste processing
RECENT Situation of the Illegal Miners - Commonly illegal (conflict with many actors ) - Speculative based, unsafe, unhealthy (environment unfriendly) - Low skilled, economically poor (exploited by financier and officer opportunist ) - No organization (unprotected) - Technologically inefficient, high resources lost, low profits, waste threat South Kalimantan Belitung island
Central Kalimantan Halmahera Halmahera Bengkulu
Bangka island Gorontalo, Sulawesi Bangka island Halmahera
Bombana, SE Sulawesi, 2008
Panyabungan, North Sumatera
Panyabungan, North Sumatera
Aek Bargot, North Sumatera
ExtracFon technology using cyanide, North Sumatera
PROBLEMS OF THE MINING PEOPLE: Advantages and Disadvantages
ADVANTAGES Advanta ges of mining people acxvixes Local people incomes increase Job availabilifes increase Local economy run faster
DISANVANTAGES Disadvant ages of mining people acxvixes No income for government Environmental damages (pollufon, land degradafon) Lost of mining resources High risk accident Culture shieing from producfve to consumpfve Fragile for conflict between local people and newseflers ExploitaFon area for financier and officer opportunists
LOCATIONS OF MINING PEOPLE ACTIVITIES In company concessions Triggering conflicts among company- local people- government In conservafon forests Triggering conflicts between local people (IM) and government In Public Spaces Triggering conflict among miners with local people and local government
Stakeholders in Mining Areas + Central Gov. (EMR,Forestry, ME, MFinance) + Holding Company + Govrel + Local Parliament + Security Officer + NGO + Financer/trader + Immigrants + Informal leaders + Opportunists
CONFLICTS AMONG THE STAKEHOLDERS at Macro Level Central Govern ment Mining resources A. Company Local Government (Unsatisfying of Local Government) central government policies B. Local Government Central Govern. ( central policies) reducing authority of Local Govern. C. Central Govern. Company ( company feels unprotected) all problems are their own risk Local Govern ment Compan y Problems of people mining
CONFLICTS AMONG THE STAKEHOLDERS at Micro Level Local Govern ment Mining Resource s A. IM Local Government (pollution, degradation etc.) employment problems B. Local Government Local People ( empowering community) ineffective policies C. Local People Immigrants ( culture conflict, sense of safe) conflict of interests Local People Illegal Miners Problems of people mining
ALTERNATIVE SOLUTION
FACTS Law No.4, 2009 handle the PM like company Local miners cannot fulfill the Law or derived regulafons (low skill, no capital and restricted technology), so they will be remain illegal Law No. 4, 2009 rules that PM should be operated in a WPR No guarantee for economically deposits available in a WPR, so they will run their acfvifes speculafvely
ALTERNATIVE SOLUTIONS Arranging appropriate RegulaFon for people mining that can be implemented technically and economically and environmental friendly Issue the PML only for companies belong to the Local Government as mining designer Employ the local people using their skill and technology appropriate with the safe and environmental friendly mining design. Issue the Mining License to companies under condifon to give opportunifes to local people involved in mining acfvifes Local people can mine in certain areas of company concession based on special agreement.