Govt to award 40 mining contracts next year<\/p>\n
JAKARTA (JP): The government will award some 40 new contracts
\nfor general mining activities early next year, Director General
\nof Mines Kuntoro Mangkusubroto says.<\/p>\n
"Of the number, 10 contracts will deal with the exploration
\nand production of gold in various parts of the country," Kuntoro
\ntold reporters during a break of the fourth Asia-Pacific Mining
\nConference and Exhibition at the Jakarta Hilton Convention Center
\nyesterday.<\/p>\n
He said that most of the potential 40 contractors, which will
\ndeal with mining exploration and production in eastern provinces,
\nare affiliated with large international business corporations.<\/p>\n
"One of them is the giant mining company Anglo American
\nCorporation of the United States, which has applied for gold
\nexploration rights in East Kalimantan and Irian Jaya," he said.<\/p>\n
In August, the government awarded five working contracts to
\nforeign companies for gold exploration in Irian Jaya, North
\nSulawesi and North Sumatra. It also gave 19 new contracts to
\ndomestic and foreign companies for general mining activities in
\nthe country.<\/p>\n
Kuntoro said the increase in the number of companies applying
\nfor mining exploration indicates the good investment climate in
\nthe country.<\/p>\n
"At least three factors have encouraged foreign investors,
\nincluding the government's law consistency, good incentives and
\neconomic and political stability," he said.<\/p>\n
He assured reporters that many foreign investor have seen that
\nthe bureaucracy and business climate in mining exploration in the
\ncountry is proactive.<\/p>\n
In terms of incentives, Kuntoro said that the government will
\nintroduce a new taxation scheme which will better benefit
\ninvestors doing business in the eastern part of the country.<\/p>\n
"I cannot give details of the incentives because they are all
\nincluded in the new tax laws being effected early next year," he
\nsaid.<\/p>\n
Most attractive<\/p>\n
B.N. Wahju, secretary general of the ASEAN Federation of
\nMining Associations (AFMA), meanwhile concurred that according to
\nhis association's studies, Indonesia is the most attractive place
\nfor foreign investments among the Asian countries.<\/p>\n
"It is because of the economic stability and the availability
\nof enormous natural resources in the country," he told The
\nJakarta Post yesterday.<\/p>\n
"We now rank 10th among the most attractive countries for
\ninvestments in the world," he said, adding that Chile ranks first
\nplace.<\/p>\n
During yesterday's seminar, Kuntoro reported that the
\ncountry's revenues from mining exports last year reached $1.55
\nbillion, up from $1.44 billion 1992, $889 million in 1991 and
\n$636 million 1990.<\/p>\n
The four day mining conference and exhibition, which was
\nofficially opened by Minister of Mines and Energy I.B. Sudjana,
\nwas organized by the ASEAN federation of mining associations
\n(AFMA) in cooperation with worldwide mining institutions.<\/p>\n
Around 150 experts of Asia, the United States and European
\ncountries are attending the conference and exhibition.<\/p>\n
The forum, which carries a theme of the World Mining
\nChallenges to the Next Century, cover various issues including
\nmineral policy, mining technology, coal and mineral development,
\nmineral processing, taxation and investment, mining regulation
\nand environment, while its exhibition displays mining equipment
\nand technology from Canada, Australia, Singapore, Germany,
\nMalaysia, the United States, Russia, China, Italy and Indonesia.
\n(fhp)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-to-award-40-mining-contracts-next-year-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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