Recent research by Cindy Cynthia Leoni from Universitas Prima Indonesia sheds light on the evolving landscape of rock mining business permits in Indonesia. The study, published in the International Journal of Business, Law, and Education, explores new regulatory frameworks introduced by Presidential Decree Number 55 of 2022. This decree delegates the authority for granting certain mining permits from the Central Government to provincial authorities, particularly for non-metallic minerals and rocks.
The research highlights a structured procedure for obtaining mining permits, which varies based on the location of the mining area. For mining activities within a district or city, applications are directed to the regent or mayor. If the mining area spans multiple districts or cities, the governor becomes the point of contact. In cases where the mining site crosses provincial borders, the application must go to the minister. Leoni emphasizes the importance of this clear delineation, stating, “The Procedure for Rock Mining Business Permits is carried out by means of an application to the regent or mayor if the mining area is in a district or city.”
One significant aspect of the study is the focus on compliance and oversight. The Energy and Mineral Resources (ESDM) Service is tasked with supervising rock mining activities post-permit issuance. This oversight is crucial for ensuring that mining operations adhere to regulations and maintain environmental standards, which can mitigate potential conflicts and enhance community relations.
The findings from Leoni’s research indicate that the new permitting process may present commercial opportunities for businesses in the energy sector, particularly those involved in non-metallic mineral extraction. The delegation of authority to provincial governments could streamline operations, making it easier for companies to navigate the permitting landscape. Furthermore, the structured approach to dispute resolution—favoring non-adjudication processes—can lead to quicker resolutions, minimizing operational disruptions.
As the demand for non-metallic minerals continues to grow, understanding these regulatory changes will be vital for companies seeking to capitalize on new mining opportunities in Indonesia. Leoni’s research not only clarifies the procedural aspects of obtaining mining permits but also underscores the broader implications for the energy sector, paving the way for more efficient and responsible mining practices.
