Mining and plantation are two sectors that greatly contribute to the regional economy. From 2008-2012, the plantation sector contributed 19.27 up to 25.29% of the Regional Domestic product with the mining sector contributing 17.38%. [1]
There are a series of issues that negatively impact and reduce investment into the mining and plantation sector. One of the major issues relates to the licensing process. Currently the process is not straightforward and involves multiple approval processes at different levels of government which makes the license process very opaque. Currently there is no comprehensive, well-organized and updated license database or monitoring system. As a result, there are activities within both sectors that are conducted without the appropriate license. Further conflict has emerged between communities and companies as well as between companies due to overlapping licenses and competing land claims. The potential for social and commercial conflict makes these sectors less attractive to outside investment and further expansion.These issues occur because there is no good governance on the licensing process.
The root problems are no monitoring system on the natural resources licensing; lack of quality of human resources and infrastructure in the licensing process; and the licensing process is rampant corruption. Also, the law and regulations for those sectors can be interpret in many ways.
The President Delivery Unit for Development Monitoring & Oversight (UKP4)/ REDD+ Agency and Province Jambi as well as Kabupaten Muaro Jambi, Merangin and Tebo signed Memorandum of Understanding on 21 June 2013 on license review and operation of situation room in order to implement REDD+. The objectives of this MoU is to improve the good governance on land utilization e.g. legal reform on mining and plantation sectors; infrastructure improvement that includes develops the E-Licensing System; transparency system; land tenure resolution conflicts and demolition license overlapping. Therefore these can contribute to the reduction of emission program, economic growth and improve the livelihoods.
[1](PDRB Jambi Menurut Lapangan Usaha 2008-2012, http://jambi.bps.go.id/images/stories/pdf/ publikasi/2013/lapus2012/index.html)
Mary Osmond 