Introduction of the JOGMEC survey and brief overview on the laws and regulations of coal mining in Indonesia. Eiichiro Nakama

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1 JOGMEC Survey on Environmental Protection, Forest Conservation, Land Reclamation and Forest Rehabilitation in Coal Mining in Indonesia Introduction of the JOGMEC survey and brief overview on the laws and regulations of coal mining in Indonesia Eiichiro Nakama 1

2 Table of the contents I. Framework of the survey II. III. IV. Back ground Objectives Implementing structure V. Activities VI. Output 2

3 I. Framework of the survey Title of the survey Survey on Environmental Protection, Forest Conservation, Land Reclamation and Forest Rehabilitation in Coal Mining in Indonesia Executing Agency Japan Oil, Gas and Metals National Corporation (JOGMEC) Funding source The Ministry of Economy, Trade and Industry Survey period October February 2016 (5 months) 3

II. Back ground of the survey Indonesia is the world s largest coal exporter and the second largest coal importing

It is necessary for Japan to know the policy trends, laws and regulations, and current situation of coal mining in

In particular, environmental protection, forest conservation, land reclamation and forest rehabilitation in coal mining

4 II. Back ground of the survey Indonesia is the world s largest coal exporter and the second largest coal importing country for Japan. It is necessary for Japan to know the policy trends, laws and regulations, and current situation of coal mining in Indonesia. In particular, environmental protection, forest conservation, land reclamation and forest rehabilitation in coal mining is very important to reduce the environmental impact, and for sustainable coal production. This is the big challenge for Indonesia to adopt appropriate policy and prepare domestic laws on those issues and implementation on the ground. It is also important for Japan to secure sustainable coal import from Indonesia. SUSTAINABLE COAL IMPORT 4

5 III. Objectives of the survey Sharing the information on the environmental protection, forest conservation, land reclamation and forest rehabilitation of coal mining in Indonesia to Japanese private sectors for sustainable coal import to Japan. by analysis and reporting on 1. The laws and regulations in Indonesia 2. The current implementation status on the ground by coal production companies in Indonesia 3. The problems and the future prospects in Indonesia 5

6 IV. Implementing structure in Indonesia Executing Agency MOU Implementing Agency Cooperation Agency Supporting Agency 6

7 V. Activities of the survey i. Literature research on laws & regulations ii. Hearing and field study Central governments Provincial government District government Academic institutions Coal production companies iii. International Seminar in Jakarta Analysis on the problems and future prospects 7

8 VI. Outputs of the survey 1. Laws and regulations of coal mining Mining stage Exploration Production Mine Closure The Ministry of Energy and Mineral Resources Law (UU) of the Republic of Indonesia Governmental regulation (PP) Ministerial regulation (Permen) The Ministry of Environment and Forestry Ex. The Ministry of Environment Ex. The Ministry of Forestry 8

9 Number of the laws and regulations related to the coal mining business which were analyzed through this survey Mining business Aspects Laws Governmental Regulations Ministerial Regulations Mining Environment Lease of Forest Area Payment of Dues Reclamation & Mine Closure Others Laws and regulations above were translated into Japanese Detail explanation will be given through the next presentations 9

Mineral and Coal The Ministry of Environment and Forestry (MoEF) - Directorate General of Forestry Planning -

10 2. Hearing and field survey 2-1. Hearing to the Central governments The Ministry of Energy and Mineral Resources (MoEMR) - Directorate General of Mineral and Coal The Ministry of Environment and Forestry (MoEF) - Directorate General of Forestry Planning - Directorate General of Environmental Pollution & Destruction Control - Directorate General of Watershed Control and Protection Forest Directorate of Technique and Environment (MoEMR) Directorate of Forestry Planning 10

Forestry Agency of provincial government - Regional Forestry Planning Center of MoEF - Regional Watershed

11 2-2. Hearing to the two province South Sumatra Province - Mining & Energy Agency, Forestry Agency of provincial government - Regional Watershed Management Center of MoEF East Kalimantan Province - Mining & Energy Agency, Forestry Agency of provincial government - Regional Forestry Planning Center of MoEF - Regional Watershed Management Center of MoEF Forestry Agency in South Sumatra Province Mining and Energy Agency in East Kalimantan Province 11

2-3. Hearing to the District governments South Sumatra Province - Muara Enim

Energy Agency, Forestry Agency East Kalimantan Province - Kutai Kartanegara

& Energy Agency, Forestry Agency Mining and Energy Agency in Muara Enim

12 2-3. Hearing to the District governments South Sumatra Province - Muara Enim District: Mining & Energy Agency, Forestry Agency - OKU District: Mining & Energy Agency, Forestry Agency East Kalimantan Province - Kutai Kartanegara District: Mining & Energy Agency, Forestry Agency - East Kutai District: Mining & Energy Agency, Forestry Agency Mining and Energy Agency in Muara Enim District Forestry Agency in Muara Enim District Mining and Energy Agency in East Kutai District 12

Development (ICALRRD), Bogor - Environmental Management Center (EMC), Universities -

13 2-4. Hearing to the Scientific Institutes Governmental Research Center - Forestry Research and Development Center (FORDA), Bogor - Center for Agricultural Land Resources Research and Development (ICALRRD), Bogor - Environmental Management Center (EMC), Universities - Institute of Technology, Bandung (ITB) - Institute of Agriculture, Bogor (IPB) FORDA, Bogor EMC, 13

16,365,593 ton (2014) PTBA has been awarded a Gold PROPER by

14 2-4. Hearing and field survey to the coal mining companies PT Bukit Asam (PTBA) Location: South Sumatra Province Production: 16,365,593 ton (2014) PTBA has been awarded a Gold PROPER by MoEF for environmental excellence and successful community development. 14

Especially for coal supply to the Electric Steam Power

15 PT. Bakti Nugraha Yuda Energi (PTBNY) Location: South Sumatra Province Production: 250, ,000 ton/year Especially for coal supply to the Electric Steam Power Plant (PLTU) which is located within the coal mining area. 15

example, In Pit Crush and Conveyer (IPCC), sluice gate in the

16 PT. Indominco Mandiri (PTIMM) Location: East Kalimantan Province Production: 15,000,000-16,000,000 ton/year Beyond Compliance for example, In Pit Crush and Conveyer (IPCC), sluice gate in the settling pond and biodiversity (fauna and flora) conservation and rehabilitation. 16

17 PT. Mahakam Sumber Jaya (PTMSJ) Location: East Kalimantan Province Production: 3,366,879 ton/year in 2015 Successful forest rehabilitation with fast-growing tree species as a shading for local tree species. 17

3. Analysis on the problems and future prospects 3-1.

protection, forest conservation, reclamation and

However, for the some small companies, it is difficult to

18 3. Analysis on the problems and future prospects 3-1. Compliance Laws and regulations on the environmental protection, forest conservation, reclamation and rehabilitation of coal mining in Indonesia are sufficiently developed. Big companies comply with the laws and regulations. However, for the some small companies, it is difficult to fully comply with the laws and regulations because of the limitation of funding, technical knowledge and know-how and human resources. 18

19 3-2. Governance After the decentralization and local autonomy, from , some District governments issued too many mining licenses to small private companies. Some problems has been occurred on the ground. e.g.) Dig and away without reclamation/rehabilitation. Mining without permission/illegal mining. Indonesian government is trying to solve those problems by issuing the new law regarding the mineral and coal mining (No.9/2009) and the local government (No.23/2014). Given the authority to the Provincial government from the District government to issue the license, management and control the mining activities. 19

20 3-3. Technical matters Environmental problems/obstacles in coal mining Acid-Mine-Drainage (AMD), Acid-Sulfate-Soil (ASS) Soil erosion, Poor soil condition Forest establishment firstly and ensure biodiversity Potential acidity assessment - Geological structure - Mine waste materials Land structuring - Gentle slope - Terrace - Drainage Physical - compact - porosity Soil condition Chemical - ph - fertility Soil amendment Topsoil/compost/liming Planting tree species - Strong Pioneer - Fastgrowing - Local 20

21 Thank you for your kind attention Arigato Gozaimas 21

Forest Rehabilitation of Post-mining Areas: Mitigating the Ecological and Socio-Economic Impacts of Mining

COURSE REPORT Forest Rehabilitation of Post-mining Areas: Mitigating the Ecological and Socio-Economic Impacts of Mining Banjarbaru & Jorong, South Kalimantan, Indonesia September 15-21, 2015 An international