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Local gov't gets rights to issue licence of mining exploration in Indonesia
Last Updated(Beijing Time):2012-11-23 18:20

Indonesia has shifted the right to issue licence for mining exploration from central government to regional government, senior official at the Energy Ministry said here on Friday.

Secretary General of Energy and Mineral Resources Ministry Waryono Karno made the statement after the Constitutional Court decision on Nov. 22 to give greater power to the local government.

"The rights to issue mining exploration licence (IUP) is now on the hand of local government, it is not the rights of the central government anymore," he said at the ministry

With shifting of the rights, the official said that he was concerned that the revenue for the central government would decrease, therefore, it was needed a coordination bewtween the central and local government. "It is a democratic lesson that we must pay high, hopefully it is not going to risk on the state reve nue," he said.

Indonesian Presidenr Susilo Bambang Yudhoyono aims at receiving more revenue from mining sectors.

To reach the goal the government has barred exportation of 65 raw mining ores since May 6, unless miners insist to build smelters and pay a 20-percent export tax, ahead of total ban on exportation of all unprocessed mining products in 2014.

Source:Xinhua 
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