Disputed mining bill endorsed

Disputed mining bill endorsed

Rendi A. Witular and PC Naommy, Jakarta

The House of Representatives has endorsed a controversial
government regulation in lieu of law that allows a number of
mining firms to resume operations in protected forests, with
critics describing the move as a reflection of the government's
lack of concern for the protection of the country's virgin
woodlands.

After a fierce debate during the House plenary session on
Thursday, 131 legislators decided to support the endorsement of
the regulation into law, while 102 legislators voted against.

The vote was taken despite the fact that a majority of the
nine factions in the House opposed the measure. Those opposing
the endorsement were the National Awakening faction, the Reform
faction, the Crescent and Star faction, the TNI/Police faction,
the Indonesian Nationhood Unity faction and the Daulat Ummah
faction.

Meanwhile, the other factions -- the Indonesian Democratic
Party of Struggle (President Megawati Soekarnoputri's party), the
Golkar Party and the United Development Party factions -- agreed
to the endorsement.

Minister of Forestry M. Prakosa said that he was happy with
the House's decision as it had finally put an end to protracted
disputes between the government and a number of mining firms
whose operations had to be halted following the enactment of Law
No. 41/1999 on forestry.

"This decision is in line with government's attempts to ensure
legal certainty in the mining sector, which has been in limbo for
years ... We are happy with the result," said Prakosa after the
plenary session

The government issued the regulation in March to allow the
mining firms in question to resume their operations in protected
forests. The regulation was issued just one month before the
legislative elections.

The decision sparked public protests, and suspicions that
government officials had accepted bribes to help finance the
election campaigns of certain political parties.

The regulation allows open-pit mining in protected forests as
long as the mining companies concerned have signed contracts with
the government prior to the enactment of Law No. 41/1999 on
forestry, which prohibits open-pit mining in protected forests.

To facilitate the implementation of the regulation, the
government issued Decree No. 41/2004 in May to allow 13 mining
firms to operate in protected forests as they were viewed as
being serious in their threats to take their cases to
international arbitration.

The 13 firms are PT Freeport Indonesia, PT Karimun Granite, PT
INCO, PT Indominco Mandiri, PT Aneka Tambang (Bahubulu), PT Aneka
Tambang (Buli), PT Natarang Mining, PT Nusa Halmahera Mineral, PT
Pelsart Tambang Kencana, PT Interex Sacra Raya, PT Weda Bay
Nickel, PT Gag Nikel, and PT Sorikmas Mining.

The endorsement of the regulation now potentially paves the
way for the remaining 140 mining firms to request the same
facilities, putting the country's already depleted virgin forests
at even greater risk of destruction, analysts say.

Prakosa, however, said that the government had yet to consider
the granting of permits to the other mining companies that were
affected by Law No. 41/1999.

"We will first stick with the current regulation that makes
only 13 firms eligible for permits. We have not yet considered
granting the other companies the same permits," he said.

Although the House has endorsed the regulation, the 13 firms
that have been granted permits still face obstacles as
environmentalists plan to challenge the House decision in the
Constitutional Court.

Longgena Ginting, the executive director of the Indonesian
Forum for the Environment (Walhi), said a coalition of NGOs would
soon file a complaint with the Court in a bid to have the
regulation annulled on the grounds that it was repugnant to the
1945 Constitution.

"We have 180 days after the regulation is gazetted to bring
the case to the Constitutional Court," said Longgena.