Bureaucratic initiative attracts investors<\/p>\n
JAKARTA (JP): Hundreds of investors have expressed their
\ninterest in the general mining sector following a bureaucratic
\ninitiative launched by the government last month.<\/p>\n
Director General of Mines Kuntoro Mangkusubroto told
\njournalists here on Friday evening that his office has registered
\n320 interested investors after it simplified investment
\nprocedures last month.<\/p>\n
Under the new procedures, investors need only five days to
\nhave their proposals processed and another 14 days to get their
\nlicenses, compared to two to six months as was the case earlier.<\/p>\n
Investors can also get information on the status of the
\ndesired locations in only 15 minutes, Kuntoro added.<\/p>\n
He explained that each investor is required to deposit Rp
\n10,000 (US$4.32) for each hectare of their proposed plots at his
\naccount as a guarantee for their serious intentions.<\/p>\n
\"They can have back their money when their investment is put
\ninto effect or when they cancel it altogether,\" Kuntoro said.<\/p>\n
He added that, in less than one month, his office has
\ncollected some Rp 110 billion in guarantee funds from interested
\ninvestors.<\/p>\n
\"Most of the guarantee funds came from foreign investors. They
\ncame from Canada, Australia, Japan and South Korea,\" Kuntoro
\ncontinued.<\/p>\n
As of last month, Kuntoro said, 132 companies had made
\ninvestments in mining under a so-called \"contract\" scheme. 90 of
\nthem, however, had terminated their activities.<\/p>\n
Six hundred and six firms had been working under a \"mining
\nauthorization\" scheme, 14 of which had terminated their
\noperations.<\/p>\n
Lusang Mining<\/p>\n
Kuntoro also disclosed that the government has revoked the
\nlicense of gold miner PT Lusang Mining for its failure to fulfill
\nfinancial obligations to its employees, partners and the
\ngovernment.<\/p>\n
Lusang Mining's unpaid obligations to its employees and
\npartners totaled Rp 900.5 million (US$390,000), and $240,013 in
\nthe form of royalties to the government.<\/p>\n
The company secured the government's license under a contract
\nof work scheme in February 1995 to conduct gold exploration in
\nLebong Tandai district, Bengkulu. It is the first domestic
\nprivate company to produce gold.<\/p>\n
Kuntoro also detailed the country's production levels of major
\nminerals last year: gold - 20.4 tons, gold in concentrate - 42.3
\ntons, silver - 181.8 tons, silver in concentrate - 81.9 tons,
\ncopper - 1.5 million tons, coal - 40.9 million tons, tin - 44,217
\ntons, bauxite - 904,459 tons, nickel - 2.5 million tons,
\nferro-nickel - 10,735 tons, nickel in matte - 43,943 tons.<\/p>\n
As of the third quarter of last year, the government's
\nrevenues from the general mining industry, in the form of
\nroyalties, land rent, exploration and exploitation fees, totaled
\nRp 57.1 billion. (rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bureaucratic-initiative-attracts-investors-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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