Harmonizing Relationship of Central Government and Regional Governments in Share Divestment of Mining Companies

Tiopan, Demson (2020) Harmonizing Relationship of Central Government and Regional Governments in Share Divestment of Mining Companies. Dialogia Iuridica, 12 (1). pp. 116-133. ISSN 2085-9945

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Abstract

According to Article 1 number 8 Government Regulation no. 23/2010 concerning the Implementation of Mineral and Coal Mining Business Activities, share divestment is the number of shares that must be offered for sale to Indonesian participants. Share divestment efforts are carried out in accordance with the central government without involving local governments which are exploration areas for mining companies. The attitude of the central government towards regional governments does not reflect the legal objectives of divesting mining company shares. The writing of this article uses a normative legal research method, namely by examining secondary data in the field of law that exists as library data using deductive thinking methods and coherent truth criteria. To analyze this problem the author uses a theory derived from the law of Gustav Radbruc's treatment of the legal system proposed by Lawrence Friedman. The author finds that the legal norms that exist at the event do not want an unfair distribution, but in other legal norms there are provisions regarding special actions that can be taken by the central government, in the mining sector that can be used as a gap for the central government to monopolize. share divestment. The author suggests that the House of Representatives should formulate a law regulating the divestment of shares by the central government which also promotes and provides equal opportunities to local governments. If local government finances are unable to make efforts to divest shares of a mining company, the government must provide a divestment grant for its shares, even though the government loses its shares, but in principle the grant is used for regional prosperity

Item Type: Article
Uncontrolled Keywords: Divestment; Regional government; Central government
Subjects: K Law > K Law (General)
Depositing User: Perpustakaan Maranatha
Date Deposited: 08 Dec 2021 22:16
Last Modified: 08 Dec 2021 22:16
URI: http://repository.maranatha.edu/id/eprint/28981

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