ENVIRONMENTAL DETERIORATION AS A SIDE

EFFECT OF GOLD MINING GOVERNANCE ABUSE

IN POBOYA

This assignment was made in order to fulfill one of the requirements

in the completion of the Basic Natural Sciences course in the pra-
international class by;
Lecturer: Dra. Vanny MA. Tiwow, M.Sc., P.hD.
In the second semester lecture of the 2024 academic year.

Compiled By
Gray Qamilla Sarayu D10123545
Tafta Al Hadar D10123269
Moh. Fierzha Putra Wardhana D10123285
Chyntia Margaretha D10123006

FACULTY OF LAW
TADULAKO UNIVERSITY
2024
PREFACE

All praise and thanks are due to God Almighty for the
completion of the paper entitled "Environmental Deterioration as a
Side Effect of Mining Governance Abuse in Palu City". The author
would also like to thank the kind-hearted people who were willing to
participate in the success of our research, especially the field research
team, the class leader, the GYF team, and the valuable members of the
Pre-International Class of 2023 of the Faculty of Law.
This paper is the result of the hard work and dedication of the
entire research team in examining the impacts of mining activities on
the surrounding environment, as well as problem solving that can
harmoniously integrate both aspects.
This research is motivated by the importance of the mining
industry to the Indonesian economy. In addition to its significant
contribution to development, mining also has a negative impact on the
environment. With the increasing awareness of the importance of
sustainable development, there is a need for a more in-depth study of
how the mining industry can operate responsibly and sustainably.

Palu, May 15th 2024

Writer

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TABLE OF CONTENT

TITLE PAGE...............................................................................................i
PREFACE....................................................................................................ii
TABLE OF CONTENT...............................................................................iii
CHAPTER I INTRODUCTION............................................................1
1.1 Background....................................................................................1
1.2 Research Objective........................................................................1
1.3 Reseach Benefit.............................................................................1
1.4 Problem Formulation.....................................................................2
CHAPTER II DISCUSSION..................................................................3
2.1 Characteristic of Mines..................................................................3
2.2 Poboya Gold Mines.......................................................................4
2.3 Indonesia Mining Governance.......................................................6
2.4 Environmental Impacts and Prevention.........................................7
CHAPTER III CLOSING........................................................................10
3.1 Conclusion.....................................................................................10
3.2 Advice............................................................................................10
1st Attachment..............................................................................................iv
2nd Attachment..............................................................................................v

iii
CHAPTER I INTRODUCTION

1.1 Background
Indonesia has diverse and complex geological characteristics that affect
mining activities as it is rich in mineral and coal resources. Indonesia's geological
structure, located on the active Pacific Ring of Fire, creates the potential for the
discovery of significant mineral deposits, but the complex geological conditions
also make mining more difficult in some areas.
Mining plays an important role in the global economy, contributing
significantly to economic growth and infrastructure development. However, it
also has significant environmental impacts, including land degradation, water
pollution and greenhouse gas emissions. This paper examines the balance between
the economic benefits of mining and its negative environmental impacts.
Through a literature review and case analysis, the paper highlights the
impacts of gold mining practices in the Poboya area and what measures can be
implemented to minimise environmental damage without compromising
economic growth. The paper also discusses various policies and regulations that
can support sustainable mining, as well as the role of technology in reducing the
environmental footprint of mining activities.

1.2 Research Objective

1. Determine the economic impact of mining,
2. Assess the environmental impact of gold mining,
3. Analyse policies and regulations, and
4. Promote an integrated approach within the community.

1.3 Research Benefit

1. Provide a more comprehensive understanding of the economic and
environmental impacts of mining activities and how they are linked.
2. Provide guidance to the mining industry on the adoption of sustainable
practices that can reduce negative environmental impacts without
compromising economic growth.
3. Assist government in formulating regulations that support sustainable and
responsible mining, taking into account both economic and environmental
aspects.
4. Raise public awareness of the impact of mining activities and the
importance of their involvement in environmental protection efforts.
5. Encourage research and development of new technologies that can be
used in the mining industry to reduce environmental impacts.

1
 6. Facilitate cooperation between government, industry and local
communities to achieve a balance between economic benefits and
environmental protection.
7. By reducing the negative impacts of mining on the environment, this
research has the potential to improve the quality of life of people living in
areas surrounding mining operations.
8. To provide recommendations for improved governance in the mining
industry, which can lead to more efficient and environmentally friendly
operations.

1.4 Problem Formulation

1. Analyse the characteristics of gold mining and mining in relation to
Indonesian law.
2. What is the environmental impact of gold mining in the Poboya region?
3. What is good mining governance for environmental sustainability?
4. What are the impacts of gold mining activities and how can they be
prevented from causing permanent damage?

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CHAPTER II DISCUSSION

2.1 Characteristics of Mines

According to Law No. 4 of 2009, Article 1: 1, mining is any or all of the
stages of activities related to the exploration, management and exploitation of
minerals or coal, including general prospecting, exploration, feasibility studies,
construction, extraction, processing and refining, transportation and sale, as well
as post-mining activities.
Meanwhile, according to Supramono, mining is an activity carried out by
digging into the ground to extract something in the form of mining products.
Another definition states that mining is the process of excavating or extracting
materials from the earth. These mining materials can be minerals, metals, coal or
other minerals that have economic value.
In the Regulation of Law No. 4 of 2009 on Mineral and Coal Mining, the
definitions of mineral mining and coal mining are generally distinguished in order
to facilitate the division of types of mining products. In Law Number 4 Year 2009
Article 1:4, it is explained that mineral mining is the mining of mineral deposits in
the form of ore or rock, excluding geothermal energy, oil and gas and
groundwater. Meanwhile, Law Number 4 Year 2009 Article 1:5 defines coal
mining as the extraction of carbon deposits contained in the earth, including solid
bitumen, peat and ice rock.
The existence of the Minerba Law as part of the government's policy is a
consequence of the problems that sometimes hamper mining operations. Through
this policy, it is hoped that the shortcomings of Law No. 11 of 1967 on the basic
regulations of mining can be remedied and that the functions and powers of the
State to control its natural resources can be restored. In this way, the constitutional
mandate that the land, water and the natural resources it contains should be
controlled by the State and used for the greatest good of the people can be
achieved.
The Minerba Law has also accommodated regional interests by
empowering local governments to carry out planning functions, grant IUPs, and
limit the area and duration of mining licences. However, the latest amendment, as
stated in the Regulation of Law No. 3 of 2020, declares that the authority to
manage mineral and coal mining, including gold, located in the regions, will be
fully taken over by the central government and will apply nationally.
One issue so serious that it has become the focus of the current
government is that of licensing. Licensing issues, which often overlap, are out of
sync between the centre and the regions, are highly susceptible to levies and
bribes, and the length of time and high costs involved discourage potential
investors.

3
 Long before Law No. 4/2009 was repealed and replaced by the latest
amendment in 2020, a company or individual wishing to carry out mining
activities in an area had to first obtain permission from the local regency or city
government. This is important because the local government has the role of
promoting, resolving conflicts and supervising mining operations, acting as a
mediator in the event of a dispute with the community1.

2.2 Poboya Gold Mining

The Poboya River Basin is the centre of the water source for the
community of Mantikulore Subdistrict. East Palu and surrounding areas.
However, around 2006, the discharge, volume and quality of the water began to
deteriorate. Instead of being dominated by trees, only grasslands, cacti and some
shrubs remained along the banks of the river. This was caused by massive gold
mining activities in the upper reaches of the river.
Gold (Aurum-79) is a mineral ore that has a number of properties, such as
resistance to corrosion and oxidation, which make it the most sought-after
commodity, ideal for various industrial and decorative applications. But until
now, gold mining has been one of the industries that has produced many pros and
cons in its operational activities.
In gold mining, there are several techniques used to treat gold. Some of
these techniques are amalgamation and cyanidation. Both techniques use toxic
materials (B3), namely mercury (Hg) and cyanide (A(CN)x). In the artisanal and
small-scale gold mining (ASGM) sector, mercury is known as mercury or silver
water, which is one of the most common gold ore binding agents used by artisanal
miners2.
The use of mercury in gold processing is one of the worst practices in
ASGM. The amalgamation process is used by miners because it is simple, quick
and easy. However, amalgamation is less effective as it only captures 10-40% of
the gold (only gold particles between 0.07-1.5 mm in size).
The practice of using these techniques does not actually meet the criteria
set by the government, as it is a dangerous mixture and has the potential to be
contaminated with mercury, cyanide and other contaminating elements 3. There are
currently around 3000 artisanal gold processing businesses in the city of Palu.

1
Yustafa Badrus Su’adah
2
Riani, E., 2010. Kontaminasi merkuri (Hg) dalam organ tubuh ikan petek (Leiognathus equulus)
di perairan Ancol, Teluk Jakarta. Jurnal Teknologi Lingkungan 11(2), pp.139-322
3
Direktorat Pengelolaan Bahan Berbahaya dan Beracun. 2018. Laporan Akhir Karakteristik Bijih
Emas Desa Hulawa, Kecamatan Buntulia, Kabupeten Pohuwato, Provinsi Gorontalo. Bandung:
CV. Pusaka Perdana.

4
2900 of them use tromol (glundung), which uses mercury in the gold processing
process4. The rest use tom, which uses cyanide in the processing process.
These tromoles and toms are scattered in various locations, not only in the
Poboya watershed, but also in the Kawatuna watershed, whose water also flows to
Talise Beach. As many as 85% of the total number of miners are in the Poboya
watershed, so the Poboya watershed has the potential to be heavily polluted by B3
and has the potential to cause cancer and so on if it contaminates the human body.
However, on the face of it, artisanal gold mining has brought significant
economic benefits by increasing the income of the people of Palu City,
particularly the people of Poboya Village, Kawatuna Village and surrounding
villages. During this period, a lot of land that was not used by the landowner now
has economic value because it is leased to mining entrepreneurs at a rental value
of Rp 2,000,000 to Rp 4,000,000 per month, depending on the area of land used.
It has also provided employment and business opportunities for the local
community. Small businesses such as kiosks and food stalls are thriving in the
area, making it very difficult to stop mining activities despite the negative
environmental and social impacts on the community5.
Therefore, if this business is left unchecked, the impact will be even
greater. It also violates Law 32 of 2009 on the Protection and Management of the
Environment, which requires that the environment be maintained so that it can be
used in harmony, balance and equilibrium, in accordance with its designation, in
order to support the implementation of environmentally sustainable development.

2.3 Mining Governance in Indonesia

Governance was initially seen as a set of rules or a way of making
decisions adopted in the new relationship between government and society 6.
Kemudian pada tahun 1990an, badan-badan internasional seperti Bank Dunia,
IMF, dan PBB mempopulerkan tata kelola yang baik, sehingga memberikan bias
preskriptif terhadap bentuk-bentuk organisasi horizontal dan koordinasi dalam
pengambilan keputusan yang diinginkan oleh pemerintah, swasta, sector, dan
masyarakat sipil7.
Mining companies recognise the importance of good governance in
maintaining a healthy environment, which in turn benefits their business.
However, society's perspective on the environment is increasingly complex,

4
Sakamoto, M., 1994. Pencemaran merkuri Teluk Buyat dan Teluk Totok Sulawesi Utara
Indonesia. National Institute for Minaminata.
5
Yusuf, M., B. Hamzah, N. Rahman, 2013. Kandungan merkuri (Hg) dalam air laut, sedimen, dan
jaringan ikan belanak (Liza meli noptera) di perairan Teluk Palu. Jurnal Akademi Kimia 2(3), pp.
140-145
6
Aguilar, 2010.
7
Ibid.

5
challenging and risky, which is why mining companies are focusing on certain
environmental structural features in their internal and external management of
mining operations.
The 1945 Constitution, Chapter XIV, Article 33:3, states that the earth and
water and the natural resources contained therein are controlled by the State and
utilised for the greatest prosperity of the people. The term 'controlled by the state'
implies absolute control by the State, but in reality, it refers to control for the
benefit of the people, especially those in the mining location. Based on the 1945
Constitution Article 18:5, local governments are entitled to their authority in the
field of licensing the management of natural resources in their autonomous
regions, including gold mining.
The management of mineral mining, which is included in the category of
non-renewable natural resources, should be managed in an optimal, efficient,
transparent, sustainable and environmentally sound manner, based on the value of
justice in order to obtain maximum benefits for the prosperity of the people in a
sustainable manner.
It would be beneficial for various interests in mining activities to consider
the interests of indigenous peoples, who have had ownership rights to land
managed as mining areas since independence. The state, through the government,
has a legal obligation to respect the rights of indigenous peoples based on the
rights of origin.

2.4 Environmental Impacts and Prevention

The mining area forms part of the national spatial planning process, which
serves as the foundation for determining mining activities. In order to determine
the mining area, it would be advisable to base this on data obtained in the field
from research results. It would therefore be beneficial for the central government
and local governments to conduct mining investigations and research in order to
prepare mining areas.
Mining activities play an important role in the global economy, providing
raw materials for various sectors, such as construction, manufacturing and energy.
However, it is important to recognise that they often have significant
environmental and social impacts. It is therefore important to ensure that
responsible and sustainable mining practices are in place, along with strict
regulations, in order to maintain a balance between resource needs and
environmental preservation and community well-being.
Mining does have the potential to have a significant impact on the
environment. The extent to which these impacts are positive or negative will
depend on the practices used and the regulations applied. Some of the
environmental impacts in mining areas are as follows:

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 1. Eosystem destruction
 Deforestation; cutting down forests to clear land for mining results
in the loss of natural habitats for flora and fauna.
 Erosion and Sedimentation; soil excavation can cause erosion
which results in sedimentation in rivers and other bodies of water,
damaging aquatic ecosystems and habitats.
2. Water pollution
 Mine Waste; water used in the mining process is often
contaminated with hazardous chemicals that can contaminate local
water sources.
 Water Flow Diversion; mining activities can alter natural water
flows, impacting downstream ecosystems and water availability for
communities.
3. Air pollution
 Dust and Gas Emissions; mining activities generate dust and toxic
gas emissions such as sulphur dichloride (SO₂) and nitrogen
dioxide (NO₂) that are harmful to human health and the
environment.
4. Degradation of soil quality
 Loss of Soil Fertility; soil that has been excavated and exposed to
mining chemicals often loses its fertility, making it unfit for
agricultural activities.
5. Dampak Sosial-Ekonomi
 Population Relocation; communities living near mining areas often
have to be relocated, which can disrupt their socio-economic lives.
The negative impacts of mining activities on the environment can be
minimised to maintain the sustainability of the ecosystem and the welfare of the
community can be maintained, some ways to minimise these impacts are as
follows:
1. Regulation and policy; By establishing laws and regulations, carrying
out evaluations, and paying attention to all types and forms of licences
related to ensuring that mining operations are carried out in a
responsible and sustainable manner, we can work towards minimising
the negative impacts of mining activities on the environment and
communities while still optimising economic benefits.
2. Integrated planning; An integrated planning approach ensures that all
environmental, social and economic aspects are taken into account
holistically at every stage of mining operations. This aims to minimise
negative impacts and maximise long-term benefits for the environment
and society.

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3. Public participations; Public participation in environmental
management in the mining sector is essential to ensure that the
interests and needs of local communities are taken into account and
protected.
4. Environmental management; Environmental management is a
complex process that requires an integrated and sustainable approach
to minimise negative impacts on the environment and society.
5. Social-ecoonomic management; A holistic approach that considers
the social and economic impacts of mining activities and strives to
achieve the greatest possible benefits to local communities and
economies while minimising negative environmental impacts.
6. Supervision and law enforcement; supervision and law enforcement
in the mining sector environment are key to ensuring that mining
activities are carried out in accordance with applicable regulations and
do not damage the environment. This step must be carried out more
effectively and efficiently to ensure that mining operations are carried
out in a sustainable and environmentally responsible manner.
7. Technology development; the development of environmental
technology in the mining sector aims to minimise the negative impact
of mining activities on the environment, as well as improve the
efficiency and sustainability of mining operations and the welfare of
communities around the mining area.
8. International co-operation; International co-operation in mining
environment is an important aspect to ensure sustainable and
responsible mining practices around the world. With international co-
operation, countries can share knowledge, technology and resources to
address environmental challenges associated with mining, so as to
provide maximum results for the social life of the community.
9. Biodiversity conservation; Biodiversity conservation in mining
environments is a complex but important challenge to ensure that
mining activities do not cause irreversible damage to local and global
ecosystems.
10. Green infrastructure development; green infrastructure integrates
ecological principles in its design and operation, and encourages the
use of environmentally friendly technologies. This measure aims to
reduce negative environmental impacts and improve the sustainability
of mining operations.

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BAB III PENUTUP

3.1Simpulan
The unregulated gold mining operations in the area have resulted in
significant environmental and public health impacts. These include water, soil
and air pollution, as well as the destruction of ecosystems, which threatens the
long-term sustainability of the environment. Furthermore, the exposure of the
local population to toxic substances from mining waste has led to adverse health
effects.
The lack of effective governance in the mining sector, manifested in the
form of inadequate regulations, weak supervision and ineffective law
enforcement, has contributed to the deterioration of the environmental situation
in Poboya. Consequently, it is imperative to implement immediate remedial
measures, including enhanced supervision, more rigorous regulation
enforcement, and robust law enforcement against violators.
Moreover, long-term solutions should encompass the promotion of
environmentally conscious mining technology and environmental rehabilitation
initiatives to reverse the detrimental effects. It is also crucial to emphasise the
significance of public awareness, by encouraging active participation in
environmental advocacy, education, and empowerment to guarantee sustainable
environmental protection.
In conclusion, coordinated and integrated actions from the government,
mining industry, communities and other stakeholders are essential to address the
negative impacts of the mismanagement of gold mining in Poboya, Palu City,
and ensure environmental sustainability and community welfare.

3.2Saran
There are several suggestions that can be made to address the problem of
mismanagement of gold mining in Poboya, Palu City, and reduce its negative
impacts on the environment and public health. Below are some suggestions that
can be considered:
 Strengthening Regulation and Supervision: The local government needs
to tighten regulations related to gold mining and increase supervision of
mining practices that do not comply with environmental and health
standards.
 Strict Law Enforcement: Ensure effective law enforcement against
violations in mining practices, by imposing strict sanctions on
perpetrators who violate environmental regulations.

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  Use of Environmentally Friendly Technology: Encourage the use of
environmentally friendly mining technology, such as the use of more
modern and efficient mining techniques and the use of mining equipment
with minimal emissions.
 Environmental Rehabilitation: Rehabilitate degraded mining areas to
restore damaged ecosystems and reduce negative impacts on the
environment.
 Community Empowerment: Empowering local communities by providing
education and training in environmentally friendly mining practices, and
strengthening their role in environmental monitoring and enforcement of
their rights.
 Government, Industry and Community Collaboration: Encourage co-
operation and collaboration between the government, mining industry and
local communities in addressing these environmental issues together.
 Development of Economic Alternatives: Develop economic alternatives
for local communities outside the mining sector, to reduce dependence on
gold mining and create sustainable livelihoods.
 Environmental Education and Awareness Campaign: Organise education
programmes and environmental awareness campaigns to increase
community understanding of the importance of protecting the
environment and the negative impacts of irresponsible mining practices.
By comprehensively implementing these suggestions, it is hoped to reduce
the negative impacts of the mismanagement of gold mining in Poboya, Palu City,
and support efforts towards environmental sustainability and community welfare.

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1ST ATTACHMENT

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2nd ATTACHMENT