"Existence of the omnibus law on Job Creation is very positive for economic recovery, especially in terms of mining. With the Job Creation Law, the state can overcome many challenges in mining, especially related to the current downstreaming," Widagdo noted in a statement here on Thursday.
The law, which reaffirms the Coal Mineral Law, will offer greater certainty in the mining sector, he remarked.
"The Job Creation Law provides greater certainty in the mining sector," the Indonesian Mining & Energy Forum (IMEF) chairman stated.
Widagdo believes that downstreaming would be able to accelerate coal as an economic booster as compared to currently only being a revenue booster.
The law allows for a policy of giving zero-percent royalties to businesses that boost the added value of coal.
Mining observer believed that efforts to encourage downstream mining through the Job Creation Law can also accelerate the creation of job opportunities and absorption of labor in accordance with the essence of the Omnibus Law.
Article 128 A of the Job Creation Law stipulated that business actors, who increase the added value of coal, can receive certain incentives towards state revenue obligations.
The Job Creation Law is Indonesia's first omnibus law, comprising 1,187 pages, is aimed at creating job opportunities for Indonesians. Related news: Babel's solar power plant development in ex-tin ore mining area
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