State Administration expert, Yusril Ihza Mahendra said that the increasing of ore value-added as determined in Article 102 and Article 103 Act number 4/2009 about ore and coal value-added (UU Minerba) is not opposing any value of state’s principle.

He explained that Article 102 and Article 103 UU Minerba contain a mandatory to bolster value-added ore and coal, by springing smelter plantation in state. Thus, our export not only comprises raw material but also intermediate or even finished goods. The trial was held in MK Plenary room, Monday (9/1).     

The value-added process may face straightway boost, because none of its requirements oppose state’s principle. The Article was also viewed to not contain ambiguous impression. “We’re not seeing contention of Article 102 UU Minerba to Article 33 verse (3) 1945 Constitution as well, the value-added process nevertheless strives for people’s prosperity,” he explained.   

Furthermore, Yusril also retained that Article 103 verse (1) UU Minerba determines that Mining Plant Permission (IUP) and Special Mining Plant Permission (IUPK) holders are obliged to plant smelter in state as logical consequences of Article 102 determination.  

He also added that the ruling of Article 103 UU Minerba requires more explanation in Government’s regulation. If the second-tier rule accentuates export ban, Constitutional Court has no competence in reviewing of which. “Supreme Court has no competence of doing so, its competence is only to reviews regulation towards Act,” he added.

Five-year Due

Meanwhile, International law expert from University of Indonesia, Hikmahanto Juwana explained that UU Minerba retains smelter must be planted five-year due after the Act took place. “Which means, after UU Minerba took place, the companies have five-year due to develop their own smelter. If there was an objection, it should have been filed five years ago,” he said.   

According to him, people of Indonesia have no intention to harness natural resources without any courage to add the value. “However, if one day we have our industry advancing, Indonesia would have another vision in mining industrial even after our resources rinsed out,” he described.

If Article 102 and Article 103 were annulled, he sees that it is unfair for the investor. “This unfair circumstance must gain more attention when Your Majesties decide to annul Article 102 and Article 103,” He closed. (Lulu Hanifah/mh/kun)