Mining body calls for policy reforms

JAKARTA (JP): The Association of Indonesian Mining Professionals (Perhapi) has called for reforms to mining policy to give greater benefits to the public.

Association chairman Herman Afif Kusumo said on Monday that the 1967 mining law should be revamped in line with the spirit of the new economic policy set out recently by the Special Session of the People's Consultative Assembly (MPR).

"The mining law should be revamped in line with public demand for reform in all sectors," Herman said.

Herman also called on the government to review Govt. Regulation No. 20/1994 on foreign investment, which allows wholly-owned foreign investment in a number of sectors of the economy, including mining, Herman said.

"The mining sector should be out of bounds for wholly foreign- owned ventures," he said.

Herman said the new law should also emphasize the need for sustainable development and environmental protection in mining areas.

Mining activities in remote areas should be maintained for longer periods of time to give greater benefits to local communities and should play lead roles in development in these areas, Herman said.

The new mining law should also oblige mining companies to take measures to ensure that local economies can adapt to an end to mining once mineral reserves have been exhausted. At present, he said, withdrawal of mining ventures results in many settlements becoming ghost towns.

"Alternative industries could be provided by following post- mining programs to turn mining areas into industrial forests or plantations," Herman said.

The new law should also oblige mining companies to protect the environment and mete out criminal punishment for those which fail to meet the obligations, he said.

In the new law, the government should also list "prime" mineral resources which have priority for development, Herman said.

Prioritizing mineral resources would help the government to resolve disputes arising from overlapping land uses, he pointed out.

The new law should also make sure that provincial governments and local communities receive a fair share of earnings from local mining activities.

He called on the government to merge supervision of the mining sector with forestry and plantations under the auspices of a new Ministry of Natural Resources, which he said would improve coordination of land use planning.

Under the changes he proposed, directorates general responsible for energy in the current Ministry of Mines and Energy would become a separate entity in a new Ministry of Energy set up to supervise the development of oil and gas resources. (jsk)