“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Table of the contents
I.

Framework of the survey

II.

Back groundIII.

Objectives

IV. Implementing structureV.

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)
3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 inIndonesia.
In particular, environmental protection, forest conservation, land
reclamation and forest rehabilitation in coal mining is very important toreduce the environmental impact, and for sustainable coal production.
This is the big challenge for Indonesia to adopt appropriate policy andprepare domestic laws on those issues and implementation on theground. It is also important for Japan to secure sustainable coal importfrom Indonesia.

SUSTAINABLE
COAL

IMPORT

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III. Objectives of the survey
Sharing the information on the environmental protection,
forest conservation, land reclamation and forest rehabilitationof coal mining in Indonesia to Japanese private sectors forsustainable coal import to Japan.
by analysis and reporting on …
1. The laws and regulations in Indonesia2. The current implementation status on the ground by coalproduction companies in Indonesia
3. The problems and the future prospects in Indonesia

5IV. Implementing structure in Indonesia
Executing Agency

MOU
Implementing Agency

Supporting Agency

Cooperation Agency

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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.
InternationalSeminarin
Jakarta

Analysis on the problems and future prospects
7VI. Outputs of the survey
1. Laws and regulations of coal mining
Miningstage

Exploration

Production

MineClosure

Law (UU) of the Republic of Indonesia
Governmental regulation (PP)Ministerial regulation (Permen)
The Ministry of Environment and Forestry
The Ministry ofEnergy and Mineral
Resources

Ex. The Ministryof Environment

Ex. The Ministry ofForestry8Number of the laws and regulations related to the coal mining
business which were analyzed through this survey
Mining business
Aspects

Laws

GovernmentalRegulations

MinisterialRegulations

Mining132

Environment

125

Lease of Forest Area

121

Payment of Dues

123

Reclamation &Mine Closure

114Others

32-Laws and regulations above were translated into JapaneseDetail explanation will be given through the next presentations9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 andEnvironment (MoEMR)

Directorate of Forestry Planning102-2. Hearing to the two provinceSouth 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 inEast Kalimantan Province11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 inMuara Enim District

Mining and Energy Agency
in East Kutai District 12

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

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 forenvironmental excellence and successful community
development.

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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 (faunaand 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.

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

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3-2. Governance 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 byissuing 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 fromthe District government to issue the license,
management and control the mining activities.

19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
acidityassessment- Geologicalstructure- Mine wastematerials

Landstructuring- Gentleslope- Terrace- Drainage

Soil condition
Physical- compact- porosity

Chemical- pH- fertility

Soil amendment
Topsoil/compost/liming

Planting
tree
species- Strong
Pioneer- Fastgrowing- Local20

Thank you for your kind attention
Arigato Gozaimas

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