REPUBLIKA.CO.ID, YOGYAKARTA -- Mining permit in Indonesia needs to be tightened before the implementation of ASEAN Economic Community in 2015. Rector of Gadjah Mada University, Pratikno mining permit issued by government allegedly threatening the sustainable of environment.

The governance of extractive industries such as mining, oil and gas, forestry, and fisheries in the region has not been well assessed. According to him, the list of 2013 Resource Governance Index recorded that Indonesia ranked 14 out of 58 countries, which had good governance of natural resources.

"Indonesian position is still below East Timor (13). Vietnam and Philippines were ranked 43 and 23," Pratikno said in Local Asian Leaders' Forum recently.

Many areas in Indonesia have abundant natural resources, but bad governance. Local people did not get the economic impact, but the economic injustice and social conflict. Marginalization of indigenous people, horizontal conflict and environmental degredation often arise from mining activities.

Districts or cities, which have natural resources in Indonesia should be able to encourage the growth of extractive industries. It will invite more investors and provide opportunities for the inclusion of advanced technology. The benefit of extractive industry was only perceived by political elites and local economic elites.

"Economic democracy becomes stopped. The benefits should be empowered society," Pratikno said.

Extractive industries should involve local people. Civil society and academia need to keep an eye on social and environmental impacts that might arise in future.

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