Mining

Mining

From Merdeka

Minister of Mines and Energy I.B. Sudjana's explanation on
Feb. 5 on general mining indicates the application of the pattern
of work contracts based on Article 10 of Law No.11/1967, in which
the government acts as the owner and the mining company becomes
the contractor.

So far local companies in cooperation with foreign investors
have enjoyed the yields of natural wealth. The government only
obtained a small percentage through PT Bukit Asam. Article 33 of
the 1945 Constitution says that mining products, like coal,
should benefit the government, the community and the Indonesian
people.

Enforcement of the law will reduce big profits enjoyed by coal
mining companies in Kalimantan and Sumatra. It is therefore not
surprising that Bakrie Bros is set to relinquish its coal mining
unit. It previously sold its shares of PT Indocooper Investama
Corp. in PT Freeport Indonesia, Irian Jaya. Bakrie Bros had
anticipated the enforcement of the 1967 law.

We are looking forward to the government's implementation of
Article 33 of the 1945 Constitution.

H.G. MALIKMASS

Jakarta