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