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