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Minerals Report - International Seabed Authority

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CHAPTER 21<br />

OFFSHORE MINERAL POLICY: THE INDONESIAN EXPERIENCE<br />

1. Legal Basis<br />

By: Prof. Dr. Hasjim Djalal<br />

(Special Advisor to the Indonesian Minister for Ocean’s Exploration and Fisheries)<br />

Article 33 of the 1945 Constitution of Indonesia (which is now in force)<br />

stated that:<br />

a) The Indonesian economy is organized as a common endeavor<br />

based on the principle of commonality (kekeluargaan). The<br />

branches of production, which are important for the state and<br />

which control the livelihood of the common people, are controlled<br />

by the state.<br />

b) Land and water (sea) and the natural resources contained therein<br />

are controlled by the state and shall be used for the utmost<br />

prosperity of the people.<br />

The Government Declaration of 13 December 1957 adopted the<br />

archipelagic state principles, which was enacted into Law number 4/1960, and<br />

stated that the archipelagic waters of Indonesia and the 12-miles territorial sea<br />

around them were parts of Indonesian national territory and therefore were<br />

placed under the national sovereignty of Indonesia. Consequently, all<br />

resources contained in those waters and their seabeds were also appertained<br />

to the Republic of Indonesia.<br />

Subsequently, law number 44 / 1960 on Oil and Gas mining in the<br />

country reflected the new situation. Immediately thereafter, Indonesia also<br />

ratified the 1958 Geneva Convention on the Continental Shelf by Law number<br />

19 / 1961.<br />

INTERNATIONAL SEABED AUTHORITY 849

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