Making use of our natural resources
Making use of our natural resources
The Busang case is still shrouded in confusion. Considerable
efforts will be needed to determine the size of the reserves
contained in the Busang I and Busang II fields.
In the meantime, we must wait on the diagnosis of a team of
geologists, including experts from Bre-X, Freeport McMoran, PT
Nusamba, JP Morgan, PT Stratchona Mineral Services, and from the
Ministry of Mines and Energy.
The Busang controversy flared up once again after two events
in March. Firstly, there was the death of Michael de Gusman, the
Bre-X Minerals Ltd. Explorations Manager. Some authorities have
claimed that De Gusman's fall from a helicopter passing over the
jungle in the Busang area was suicide.
Secondly, there was the revelation the Busang gold reserves
were possibly far lower than levels claimed by Bre-X -- a mere 15
million ounces, which would rule out mining.
It is suspected that Gusman had given an inaccurate assessment
of the Busang gold deposits, an act which misled investors in the
stock exchange. If this is true, he also misled the Indonesian
government and people.
This case has taught us valuable lessons. It has demonstrated
just how ignorant we are of the actual content of our soil. It
has revealed our dependency on expert opinion. And it has shown
that sometimes what we are told serves interests other than our
own.
Paragraph 3 in Article 33 of our Constitution stipulates that
"land and water and the natural riches contained therein shall be
controlled by the State and shall be made use of for the greatest
benefit of the people."
The phrase "controlled by the State", is open to different
interpretations. On the other hand, there is certainly a
consensus that whatever form this state control may take, the
"greatest benefit of the people" must be served -- that is to say
the natural riches must be managed accordingly.
The problem is finding a way to establish control over our
natural resources which are uncertain in content. The mapping of
our forests and exploration for minerals will be expensive and
complicated -- calling on two scarce inputs into the development
process -- money and technology.
The dilemma is obvious. We must devote greater attention to
our natural resources. These endowments are both vital for our
development, and a source of international competitiveness. In
this day and age, our technological and economic progress places
us in a better-than-ever position to do so.
-- Kompas, Jakarta