sharing in governance of extractive industries

Policy Brief: Compliance of Reclamation and Post Mining Fund Placement in Indonesia

Since 2011, ex-mine pits have claimed the lives of 32 people in East Kalimantan Province, Indonesia. Not to mention the environmental disaster, namely flood and damaged water system. PWYP Indonesia has identified a number of issues leading to such tragedy.

Firstlow company compliance. 60% of mining permits (domestic investment) have not allocated reclamation and post-mining fund, according to ministry data.

Second, weak law enforcement. Despite numerous serious violations in the implementation of reclamation and post-mining, only administrative sanctions have been imposed by the government so far.

Third, poor governance. Data governance is still a major problem. An integrated database of the reclamation and the post-mining fund between national and local government has not been developed, leading to poor data quality. Furthermore, the transferring process of data and documents, as well as authority mandated by Local Government Law, has not been carried out in an optimum manner.

Fourth, poor monitoring function. Due to the limited capacity of the mining inspector, the monitoring function cannot be carried out in an optimum manner. 

On this matter, PWYP Indonesia outlined four main recommendations:

1. Improving the licensing process through strict regulation enforcement

2. Curbing mining permits which haven't placed reclamation and post-mining fund

3. Increasing the quantity and quality of mine inspector for a stronger monitoring 

4. Accelerating the transferring process of reclamation and post-mining fund from the district from a more effective fund disbursement

Read the full brief here: https://pwyp-indonesia.org/en/528059/compliance-of-reclamation-and-...

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