Busang gold mine and DPR

Busang gold mine and DPR

From Adil

The Busang gold project in East Kalimantan has triggered a lot of debate in society. Some based their arguments on Article 33 of the 1945 Constitution. And since the mega project will involve a huge profit, it is hoped the government will make a wise decision, just like it did regarding oil when the state-owned oil company Pertamina received 85 percent of the profit and foreign investors were awarded 15 percent.

Others said that we should know our capacity, being short of capital and lacking the technology to tap natural resources.

Indonesia has been using sophisticated technology in its successful production of aircraft, and managing the Busang gold mine therefore should not cause a headache. Concerning the funding of the project, Indonesia can tender it in the capital market, or obtain foreign loans without directly involving foreign investors in the project. Some monetary experts have even suggested that the government deploy a "deficit spending" system which means the government should print enough money to fund the project.

Unfortunately, political development is not conducive to the gold mine project and people are critical of conglomerates. So it would be better if the project was managed by the existing state- owned company, or by a new specially-established state company.

Every decision would invite pros and cons. Therefore, for the sake of political stability, it would be wise for the government to consult the House of Representatives, to deliberate on matters. By doing so, the interests of the people would be included in the decision making process.

H. M. SANUSI

Jakarta