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“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

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Table of the contents

I. Framework of the survey

II. Back ground

III. Objectives

IV. Implementing structure

V. Activities

VI. Output

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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 2015 - February 2016 (5 months)

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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.

II. Back ground of the survey

COAL IMPORT

SUSTAINABLE

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III. Objectives of the survey

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

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 …

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IV. Implementing structure in Indonesia

MOU

Executing Agency

Implementing AgencyCooperation Agency

Supporting Agency

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V. Activities of the survey

i. Literature research on laws & regulations

ii. Hearing and field studyiii.

Inter-

national

Seminar

in

Jakarta

Analysis on the problems and future prospects

Central governments

Provincial government

District government

Academic institutions

Coal production companies

Law (UU) of the Republic of Indonesia

Governmental regulation (PP)

Ministerial regulation (Permen)

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VI. Outputs of the survey

1. Laws and regulations of coal mining

Exploration ProductionMine

ClosureMining

stage

The Ministry of

Energy and Mineral

Resources

The Ministry of Environment and Forestry

Ex. The Ministry

of Environment

Ex. The Ministry of

Forestry

Mining business

Aspects

Laws Governmental

Regulations

Ministerial

Regulations

Mining 1 3 2

Environment 1 2 5

Lease of Forest Area 1 2 1

Payment of Dues 1 2 3

Reclamation &

Mine Closure

1 1 4

Others 3 2 -

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Number of the laws and regulations related to the coal mining

business which were analyzed through this survey

Detail explanation will be given through the next presentations

Laws and regulations above were translated into Japanese

2. Hearing and field survey

2-1. Hearing to the Central governments

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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

2-2. Hearing to the two province

11Forestry Agency in South Sumatra

Province

Mining and Energy Agency in

East Kalimantan 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

2-3. Hearing to the District governments

12Mining and Energy Agency

in Muara Enim District

Forestry Agency in

Muara Enim District

Mining and Energy Agency

in East Kutai District

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

2-4. Hearing to the Scientific Institutes

13FORDA, Bogor EMC,

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)

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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.

2-4. Hearing and field survey to the coal mining companies

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PT. Bakti Nugraha Yuda Energi (PTBNY)

Location: South Sumatra Province

Production: 250,000 - 335,000 ton/year

Especially for coal supply to the Electric Steam Power Plant

(PLTU) which is located within the coal mining area.

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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.

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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.

3. Analysis on the problems and future prospects

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.

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3-1. Compliance

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After the decentralization and local autonomy, from 2001 -

2009, 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.

3-2. Governance

3-3. Technical matters

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Forest establishment firstly and ensure biodiversity

Land

structuring

- Gentle

slope

- Terrace

- Drainage

Soil condition

Soil amendment

Topsoil/compost/liming

Physical

- compact

- porosity

Chemical

- pH

- fertility

Planting

tree

species

- Strong

Pioneer

- Fast-

growing

- Local

Acid-Mine-Drainage (AMD), Acid-Sulfate-Soil (ASS)

Potential

acidity

assessment

- Geological

structure

- Mine waste

materials

Soil erosion, Poor soil condition

Environmental problems/obstacles in coal mining

Thank you for your kind attention

Arigato Gozaimas

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