BIDA loses licensing for sand operations<\/p>\n
JAKARTA (JP): The Ministry of Mines and Energy has taken over
\nthe licensing of sand quarrying operations off Batam island and
\nits neighboring isles in Riau province from the Batam Industrial
\nDevelopment Authority (BIDA).<\/p>\n
Ministry spokesman Budi Sulistiyo said on Friday that the
\nMinistry took over the quarrying licensing on July 7 this year
\nand President BJ Habibie, who formerly chaired BIDA, had approved
\nthe change through a presidential decree issued on Aug. 1 this
\nyear.<\/p>\n
He said Minister of Mines and Energy Kuntoro Mangkusubroto had
\nordered all sand quarrying and dredging companies operating in
\nthe area to renew their licenses with the ministry's Directorate
\nGeneral of Mining by Jan. 6 next year.<\/p>\n
There are currently five companies operating in Batam and its
\nsurroundings with 169,480 hectares of contract areas.<\/p>\n
The companies are PT Citra Harapan Abadi which has a quarrying
\ncontract on 7,738 hectares, PT Equator Reka Citra having 12
\ncontract areas covering 65,980 hectares, PT Barelang Sugi Bulan
\nholding four contract areas totaling 50,702 hectares.<\/p>\n
Others are PT Bumi Samudra Argomegah with one contract area of
\n19,250 hectares and PT Batamatma Mandrasakti with one contract
\narea of 25,910 hectares.<\/p>\n
Budi did not reveal the owners of the companies.<\/p>\n
According to Budi, the companies have quarried 312.6 million
\ncubic meters from the area up to July this year, giving BIDA
\nS$287.6 million (US$165.2 million) in royalties.<\/p>\n
All the sand was exported to Singapore.<\/p>\n
Budi said the ministry had thus far awarded 62 licenses for
\nsand exploration outside Batam and nearby islands, but work had
\nstarted at only five of the locations.<\/p>\n
The five companies have quarried 52.18 million tons of sand
\nsince 1997, giving the government Rp 10.15 billion (about
\n$923,000) in royalties.<\/p>\n
Sand exploration licenses are valid for two years but can be
\nextended another year.<\/p>\n
Sand production licenses last for 30 years but can be extended
\ntwice for a period of 10 years each time.<\/p>\n
The ministry also issues sand transportation and marketing
\nlicenses which are effective for 10 years but can be extended
\ntwice for five years each time. (jsk)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bida-loses-licensing-for-sand-operations-1447893297",
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"sponsor": "Okusi Associates",
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