Legalization of illegal small-scale mining, as a policy of business guarantee and environmental management

Abstract

Small-scale mining has a very long history, and the majority operated without permits: coal and almost all kinds of minerals they cultivate. The area of operation covers most of Indonesia. There are grab licensed mining areas. The number of illegal miners is estimated at more than 3.6 million people, about 1.4 million gold miners. This activity has been going on for years, never be solved. The Negative impacts of illegal mining, include the loss of potential state revenue, environmental damage and mercury pollution, mining accidents, social vulnerabilities, conflicts with licensed companies, and no resource conservation. It is time for this issue serious attention of the government to be resolved. Legalization by granting permits can be a business guarantee that will grow responsibility for regulations and become the basis for environmental management. This research is socio-legal research. The role of local governments, associations, and the state-owned company is required in technical guidance on mining and the environment, institutions, business management, and product markets. If the activities can be managed and developed, the negative impacts can be overcome. So, the benefits of their business can become a forum for people’s activities in the mining sector, and state revenues can be collected.