Bureaucratic initiative attracts investors
Bureaucratic initiative attracts investors
JAKARTA (JP): Hundreds of investors have expressed their
interest in the general mining sector following a bureaucratic
initiative launched by the government last month.
Director General of Mines Kuntoro Mangkusubroto told
journalists here on Friday evening that his office has registered
320 interested investors after it simplified investment
procedures last month.
Under the new procedures, investors need only five days to
have their proposals processed and another 14 days to get their
licenses, compared to two to six months as was the case earlier.
Investors can also get information on the status of the
desired locations in only 15 minutes, Kuntoro added.
He explained that each investor is required to deposit Rp
10,000 (US$4.32) for each hectare of their proposed plots at his
account as a guarantee for their serious intentions.
"They can have back their money when their investment is put
into effect or when they cancel it altogether," Kuntoro said.
He added that, in less than one month, his office has
collected some Rp 110 billion in guarantee funds from interested
investors.
"Most of the guarantee funds came from foreign investors. They
came from Canada, Australia, Japan and South Korea," Kuntoro
continued.
As of last month, Kuntoro said, 132 companies had made
investments in mining under a so-called "contract" scheme. 90 of
them, however, had terminated their activities.
Six hundred and six firms had been working under a "mining
authorization" scheme, 14 of which had terminated their
operations.
Lusang Mining
Kuntoro also disclosed that the government has revoked the
license of gold miner PT Lusang Mining for its failure to fulfill
financial obligations to its employees, partners and the
government.
Lusang Mining's unpaid obligations to its employees and
partners totaled Rp 900.5 million (US$390,000), and $240,013 in
the form of royalties to the government.
The company secured the government's license under a contract
of work scheme in February 1995 to conduct gold exploration in
Lebong Tandai district, Bengkulu. It is the first domestic
private company to produce gold.
Kuntoro also detailed the country's production levels of major
minerals last year: gold - 20.4 tons, gold in concentrate - 42.3
tons, silver - 181.8 tons, silver in concentrate - 81.9 tons,
copper - 1.5 million tons, coal - 40.9 million tons, tin - 44,217
tons, bauxite - 904,459 tons, nickel - 2.5 million tons,
ferro-nickel - 10,735 tons, nickel in matte - 43,943 tons.
As of the third quarter of last year, the government's
revenues from the general mining industry, in the form of
royalties, land rent, exploration and exploitation fees, totaled
Rp 57.1 billion. (rid)