By: Arianty Prasetiaty
Head of Sub-Sector for Transportation, Manufacturing, Industry and Services
DDDT SDA and LH Inventory Sector
Kalimantan Ecoregion Development Control Center, Ministry of Environment and Forestry
For more than a decade, decentralization has been implemented in Indonesia through Law Number 22 of 1999 in conjunction with Law Number 32 of 2004 concerning Regional Government. One of the sectors included in decentralization is the mining and energy sector. Strengthened by Law Number 4 of 2009 concerning Mineral and Coal Mining, some authority in licensing and supervision of general mining is delegated from the central government to regional governments. At that time, it was hoped that the decentralization of the mining and energy sector would allow the management and utilization of natural resources to be carried out and felt as much as possible at the site level so that it could increase regional economic growth evenly.
Now decentralization, which has been running for more than a decade, has undergone changes with the issuance of Law no. 23 of 2014. The authority of districts/cities in government affairs in the fields of forestry, maritime affairs and mineral resources energy has again become a matter for the central government and provincial governments. The implications of this change in authority, especially for the mining sector, are seen as eliminating the potential for Regional Original Income (PAD) and giving rise to debate regarding Profit Sharing Funds (DBH) for natural resources (SDA), especially the general mining sector. So far, DBH SDA calculations still use Law no. 33 of 2004 concerning Central and Regional Financial Balance. However, currently discussions are starting to change the percentage of profit sharing (which is greater to the Province) based on the delegation of mining authority.
More: http://kalimantan.menlhk.go.id/index.php/public/info/download/1433
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