Govt urges House to accept mining proposal<\/p>\n
Fitri Wulandari, The Jakarta Post, Jakarta<\/p>\n
The government called on the House of Representatives to
\nimmediately allow 13 mining companies to resume activities in
\nprotected forests because investment in the mining sector is
\nrunning thin.<\/p>\n
Coordinating Minister for the Economy Dorodjatun Kuntjoro-
\nJakti said the existing investment plans in the mining sector
\nwere projected to last until 2007.<\/p>\n
\"After 2007, there will be no new (investment) activities.
\nPlease allow these 13 companies to go in,\" Dorodjatun said in a
\nmedia briefing after opening a conference of Indonesian geology
\nexperts on Tuesday.<\/p>\n
The 13 mining companies are among 22 companies who have
\nappealed for the resumption of their operations in protected
\nforests after the implementation of forestry law No. 41\/1999,
\nwhich bans open-pit mining activities in protected forests.<\/p>\n
These companies received contracts years before the law was
\nenacted and their working areas were not classified as protected
\nforests at the time. But their appeal was rejected by the House
\nlast month.<\/p>\n
A government document shows that the 13 mining firms could
\ncontribute around US$379.81 million worth of tax and non-tax
\nrevenue each year. These mines would absorb 47,269 local workers,
\nwith eight of the 13 companies employing a workforce 90 percent
\ncomprised of local workers. Their total investment in the country
\nup to 2002 had reached $7.6 billion.<\/p>\n
The forestry law, however, is lauded by environmental
\nactivists. They say mining activities are responsible for damage
\nto Indonesia's forest resources.<\/p>\n
While acknowledging concerns over environmental degradation,
\nDorodjatun said mining areas would only take up 2 percent of
\ntotal protected forest areas, which currently stand at 11.4
\nmillion hectares.<\/p>\n
Dorodjatun said new mining activities should start within 10
\nto 20 years to take advantage of the rising price of mining
\ncommodities spurred by high demand from China's rapid
\nmanufacturing industry.<\/p>\n
\"If we start new mining investment after 20 years, it will be
\ntoo late because by then China may be slowing down and has less
\ndemand,\" he claimed.<\/p>\n
The mining sector has been in the doldrums for years due to
\nuncertainty in government mining policy, high taxes, lack of
\nsecurity guarantees, corruption and inconsistencies related to
\nregional autonomy. These have discouraged existing mining
\ncompanies and potential investors.<\/p>\n
The country is slipping off the stage of the world's mining
\nindustry in terms of attractiveness for investment. The
\nIndonesian Mining Association (IMA) said Indonesia was ranked 27
\nout of 35 countries surveyed between 2001 to 2002.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-urges-house-to-accept-mining-proposal-1447893297",
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"sponsor": "Okusi Associates",
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