Monthly Report: The New Dynamic in the Coal Industry

By Editorial Team 02/06/2020

EXECUTIVE SUMMARY

  • The new mineral and coal law raises a number of controversies so that it could be brought to the Constitutional Court for a judicial review. Inevitably, the certainty of its application will be hampered by resistance, especially from civil society.
  • The centralization of the licensing authority to the central government is one of the articles highlighted by the public because it is considered to be contrary to regional autonomy. The loss of local government authority in licensing may result in many new restrictions in the area, such as levies.
  • The mining industry in the country is currently controlled by companies affiliated with conglomerates in the energy sector. These conglomerates are among the wealthiest people in Indonesia and have close relations with political groups.

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