Govt to award 40 mining contracts next year
Govt to award 40 mining contracts next year
JAKARTA (JP): The government will award some 40 new contracts
for general mining activities early next year, Director General
of Mines Kuntoro Mangkusubroto says.
"Of the number, 10 contracts will deal with the exploration
and production of gold in various parts of the country," Kuntoro
told reporters during a break of the fourth Asia-Pacific Mining
Conference and Exhibition at the Jakarta Hilton Convention Center
yesterday.
He said that most of the potential 40 contractors, which will
deal with mining exploration and production in eastern provinces,
are affiliated with large international business corporations.
"One of them is the giant mining company Anglo American
Corporation of the United States, which has applied for gold
exploration rights in East Kalimantan and Irian Jaya," he said.
In August, the government awarded five working contracts to
foreign companies for gold exploration in Irian Jaya, North
Sulawesi and North Sumatra. It also gave 19 new contracts to
domestic and foreign companies for general mining activities in
the country.
Kuntoro said the increase in the number of companies applying
for mining exploration indicates the good investment climate in
the country.
"At least three factors have encouraged foreign investors,
including the government's law consistency, good incentives and
economic and political stability," he said.
He assured reporters that many foreign investor have seen that
the bureaucracy and business climate in mining exploration in the
country is proactive.
In terms of incentives, Kuntoro said that the government will
introduce a new taxation scheme which will better benefit
investors doing business in the eastern part of the country.
"I cannot give details of the incentives because they are all
included in the new tax laws being effected early next year," he
said.
Most attractive
B.N. Wahju, secretary general of the ASEAN Federation of
Mining Associations (AFMA), meanwhile concurred that according to
his association's studies, Indonesia is the most attractive place
for foreign investments among the Asian countries.
"It is because of the economic stability and the availability
of enormous natural resources in the country," he told The
Jakarta Post yesterday.
"We now rank 10th among the most attractive countries for
investments in the world," he said, adding that Chile ranks first
place.
During yesterday's seminar, Kuntoro reported that the
country's revenues from mining exports last year reached $1.55
billion, up from $1.44 billion 1992, $889 million in 1991 and
$636 million 1990.
The four day mining conference and exhibition, which was
officially opened by Minister of Mines and Energy I.B. Sudjana,
was organized by the ASEAN federation of mining associations
(AFMA) in cooperation with worldwide mining institutions.
Around 150 experts of Asia, the United States and European
countries are attending the conference and exhibition.
The forum, which carries a theme of the World Mining
Challenges to the Next Century, cover various issues including
mineral policy, mining technology, coal and mineral development,
mineral processing, taxation and investment, mining regulation
and environment, while its exhibition displays mining equipment
and technology from Canada, Australia, Singapore, Germany,
Malaysia, the United States, Russia, China, Italy and Indonesia.
(fhp)