Mining decree deliberations commence

Mining decree deliberations commence

Moch. N. Kurniawan, Jakarta

The House of Representatives (DPR) established a special
committee on Monday to deliberate a controversial government
regulation in lieu of legislation (Perpu) No. 1/2004, which
allows mining companies to resume operations in protected
forests.

Legislator Moh. Askin, chairman of the sub-commission of
Commission VIII that deals with the environment, said the setting
up of the committee marked the beginning of process.

"The special committee consists of 27 legislators with most
of them coming from Commissions III and VIII," Askin said.

Commission III is responsible for, among other things,
forestry affairs, while Commission VIII is in charge of energy,
oil, gas and the environment.

According to Askin, House Commission VIII had made up its mind
to reject the regulation. Some members of Commission III had also
expressed their opposition to the ruling.

A regulation in lieu of legislation, which enters into effect
immediately after it is issued, is permitted where it is
necessary to act quickly to deal with an emergency. However,
experts and environmental activists have said that the current
situation does not warrant such a regulation.

Government Regulation in Lieu of Legislation No. 1/2004
provides that all mining contracts entered into with mining firms
before the implementation of Law 41/1999 on forestry must be
honored.

Law No. 41/1999 prohibits open pit mining in protected
forests. Open pit mining is a common method employed by mining
firms in this country.

The issuance of Regulation No. 1/2004 sparked criticism from
various sides worried that it would only pave the way for a
number of mining firms to resume operations in protected forests.

Their fears came true as President Megawati Soekarnoputri
issued Decree No 41/2004 on May 12 allowing 12 mining firms to
operate in 13 locations that impinged on or were located in
protected forests.

The 12 mining firms are PT Freeport Indonesia (2 mining
sites), PT Karimun Granit (1), PT INCO (1), Indominco Mandiri
(1), PT Aneka Tambang (2), PT Natarang Mining (1),PT Nusa
Halmahera Minerals (1), PT Pelsari Tambang Kencana (1), PT
Interex Sacra Raya (1), PT Weda Bay Nickel (1), PT Gag Nickel
(1), and PT Sorikmas Mining (1).

State Minister for the Environment Nabiel Makarim had said
earlier he had not been invited to the discussions on the
regulation.

He said Minister of Forestry Affairs Mohammad Prakosa knew
about the regulation, and asked The Jakarta Post to go to the
Ministry of Energy and Mineral Resources to enquire about the
issue.

Askin went on to say that the issuance of Government
Regulation in Lieu of Legislation No. 1/2004
did not meet the requirement for an emergency as stipulated in
the 1945 Constitution.

"We will ask the House to reject the regulation," he said.

Meanwhile, Maria Farida Indrati, a senior law lecturer, said
that the government's reason for issuing the regulation needed to
be examined.

"The government argues in the regulation that Law No 41/1999
has given rise to a lack of legal certainty for mining firms that
signed contracts prior to its implementation. The government also
claims that the Law has made it difficult for it to attract
investors," she said.

"So we have to analyze from various perspectives the question
of whether or not the government's reasons supporting the
issuance of the regulation may be considered to be pressing," she
said.