Mines and Energy Ministry told to follow rules

JAKARTA (JP): Vice President Try Sutrisno told yesterday Ministry of Mines and Energy officials to be consistent in the way they promoted investment in the mines and energy sector.

"Don't break the existing rules of the game or standards in trade and investment," Try said at his office.

He said that in the current era of openness investors needed clear and transparent transactions.

He said ministry officials should learn the existing local and international regulations so that they could force win-win solutions in their negotiations with investors.

Try's comments were made in the wake of the ministry's failed attempt to oblige foreign mining contractors to give the state at least 10 percent of their mining projects.

Director General of Mining Adjat Sudradjat recently proposed that seventh generation mining contracts of work, which had been signed by his predecessor, be changed to accommodate the new policy.

Adjat said the minister proposed the change to mining rules in response to the public's call for the state to get a higher stake of mining operations.

Investors rejected changes while observers dismissed the ministry's effort as inconsistent with a 1994 regulation which allows wholly owned foreign investment in the mining sector.

The ministry dropped the proposal due to public pressure.

Try said Indonesia still needed foreign investors in the mining sector because the country lacked mining technology and funds.

"But, we have to gradually master the technology to make ourselves more competitive and have greater bargaining power in the mines and energy business," Try said in his opening address to the national work meeting of Mines and Energy Ministry officials.

He also told officials to pay attention to protecting the environment in supervising mining activities.

The ministry work meeting, To Increase the Readiness of the Mines and Energy Sector for the Era of Openness, ends tomorrow. (jsk)