House rejects proposal on mining in protected forest<\/p>\n
Sandy Darmosumarto, The Jakarta Post, Jakarta<\/p>\n
The House of Representatives rejected a government proposal to
\nallow 13 mining companies to resume activities in protected
\nforests, in what some government officials described as another
\nblow to the country's investment and export activities.<\/p>\n
The decision was made on Wednesday by House Commission III on
\nforestry affairs and Commission VIII on mining affairs during a
\nmeeting with five related ministers, led by Coordinating Minister
\nfor the Economy Dorodjatun Kuntjoro-Jakti.<\/p>\n
The 13 mining firms are among the 22 contractors that appealed
\nto the government to resume operations in protected forests
\nfollowing the implementation of forestry law No. 41\/1999, which
\nprohibits open-pit mining in conservation areas. When these firms
\nreceived contracts from the government several years ago, before
\nthe law was enacted, their concession areas were not designated
\nas protected forests.<\/p>\n
The contractors that submitted the appeal include Natarang
\nMining in Lampung, Karimun Granit in Riau, Pelsart Tambang
\nKencana in South Kalimantan, Interex Sacra Raya in East and South
\nKalimantan, Sorikmas Mining in North Sumatra and Indominco
\nMandiri in East Kalimantan.<\/p>\n
In the eastern part of the country, Freeport Indonesia and Gag
\nNickel in Papua, INCO in Sulawesi, Aneka Tambang A (Buli-Malut)
\nand Nusa Halmahera Mineral in North Maluku, Weda Bay Nickel in
\nNorth Maluku and Aneka Tambang B (Bahulu-Slutra) in Southeast
\nSulawesi are among the firms hoping to resume their activities in
\nprotected forests.<\/p>\n
Concerned about the investment environment in the eastern
\nregion, State Minister for Eastern Indonesian Development Manuel
\nKaisiepo said that \"the only commodity the east can rely on is
\nits natural resources, including in the mining sector\".<\/p>\n
\"We realize that the eastern region is lagging behind in
\ndevelopment. To accelerate the process, we have to optimally
\nexplore every potential. One of these potentials is mining,\"
\nManuel said.<\/p>\n
Made Astawa Rai, deputy for development resources with the
\noffice of the state minister, commented that \"today's lack of
\nprogress at the House further creates uncertainty for mining
\ninvestors\".<\/p>\n
Investment from these 13 contractors has the potential to
\ncontribute a total of US$379.81 million worth of tax and non-tax
\nrevenue, according to a government document. In addition, these
\nmines would absorb 47,269 local workers, with eight of the 13
\ncompanies employing an average of over 90 percent local workers.
\nTheir total investment in the country up to 2002 reached $7.6
\nbillion.<\/p>\n
Another concern is that if the government fails to honor the
\nmining contracts, it could face litigation that could cost it up
\nto $22.8 billion.<\/p>\n
Made Astawa added that the shift of status from protected
\nforest to nonprotected forest to allow the 13 contractors to
\nengage in open-pit mining would account for only \"2.07 percent of
\nthe total protected forest area in the mining industry, and not
\nthe total of all protected forests in Indonesia\".<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/house-rejects-proposal-on-mining-in-protected-forest-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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