Clarification on Busang required

Busang, a mere dot on the map of Kalimantan's interior, has come to our attention again. The controversy is over the gold deposits that are buried underneath the earth's surface at Busang. If new data originating from Freeport McMoran Copper and Gold are proven true, it is not impossible that Busang will come to represent an embarrassing scandal for us.

The present controversy arose after an AFP report revealed the results of surveys presumably made by Freeport, a partner of the Bre-X company in the Busang II and Busang III mines, claiming that the area's gold reserves were far below the amount that were believed to be at present.

Bre-X previously claimed to have found gold reserves in the area amounting to some 57 million ounces. But according to Freeport, only 15 million ounces are present, which makes mining economically unfeasible.

It is difficult for us to present a lucid evaluation of this case. However, two things are worth noting. First, we do not possess -- much less control -- any data about our own natural resources. Second, we have become accustomed to the lack of transparency in processes involving tenders and other such matters. In this way, we regard even the most startling decisions as commonplace.

Many questions could be asked about some very basic matters. Such a condition obviously makes it easy for outsiders to profit while we are forced to watch in bewilderment and become the laughing stock of others.

It is advisable for the government to exercise restraint and refrain from making clouded statements as this would only increase confusion among the public. We are still hoping that the Bre-X claim concerning the Busang gold reserves are supported by accurate data. However, if the Freeport McMoran data should be proven correct, sanctions should be made by the government against Bre-X.

The most important step for the government to take would be to employ independent geologists to conduct new surveys of the Busang II and Busang III deposits. In addition, the mapping of our natural resources, both on land and offshore, should be made a top priority.

The question of cost appears to be irrelevant in this case. We would also like to remind the government of the importance of transparence in any decision making process. It would be even better for the government to invite the public's participation in such matters, either by consulting the House of Representatives or by inviting public debate. Aside from being more democratic, such a step would make the people more willing to accept any risks involved in the case that anything goes wrong.

-- Bisnis Indonesia, Jakarta