Abstract
Ever since the implementation of the regional governance reform era, fundamental changes have occurred in the discretion for the management of the mineral and coal mining sectors. The adoption of Law Number 22 Year 1999 led to the expansion of regional governments’ autonomy, applying autonomy in the broadest sense of the word, by focusing merely on ‘decentralization’, while disregarding the principle of de-concentration. Governmental affairs submitted based on decentralization refer to discretion by attribution, whereas de-concentration refers to discretion by delegation. Basically, all governmental affairs are submitted to the Regency and Municipality Government, except for 6 (six) matters which constitute the discretion of the central government. Discretion for the management of mining includes the discretion vested in the Regency and Municipality Government by virtue of Government Regulation Number 75 Year 2001. This implies that the concept of ‘control by the state’ (‘penguasaan negara’) as mandated in Article 33 of the 1945 Constitution of the State of the Republic of Indonesia has become degraded.
Highlights
In the history of mining management since the era of the Dutch Indies up to the present time there have been many ups and downs
Following the proclamation of independence, the State of the Republic of Indonesia started to introduce measures for the management of mining in order to bring them in line with the mandate of Article 33 paragraph (3) of the 1945 Constitution of the State of the Republic of Indonesia
The newly introduced policy reopened the opportunity to foreign investors to invest in Indonesia
Summary
In the history of mining management since the era of the Dutch Indies up to the present time there have been many ups and downs. Authority by attribution is vested in the Central Government, and in the Regional Government, in accordance with their authority respectively It implies that there is an asynchrony vis-à-vis Article 33 of the 1945 Constitution of the State of the Republic of Indonesia which states that control over natural resources is in the hands of the State, which means that it is in the hands of the Central Government alone. Even though from the juridical formal point of view the nomenclature adopted in Law Number 4 Year 2009 is LICENSE (IZIN), from the material viewpoint the IUP belongs to the Concession license category
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