Ministry criticized over photocopying cost
JAKARTA (JP): The Association of Indonesian Mining Professionals has criticized the Ministry of Mines and Energy's move to charge mining contractors for photocopying Contracts of Work (COW).
Association chairman Herman Afif Kusuma said that the photocopying cost -- Rp 24.75 million (US$9,915) for each COW -- was unreasonable, and the move could affect the investment climate in the mining sector.
"Actually, it is not a big amount of money. But it sounds unreasonable that photocopying could cost Rp 25 million," Herman told The Jakarta Post yesterday.
Director General of Mining at the Ministry of Mines and Energy Adjat Sudradjat earlier admitted to charging applicants of seventh generation contracts of work for photocopying, at Rp 24.7 million per application.
He said the payments were legal, although not obligatory, and the money would be used to cover photocopying costs.
"The money has not been used and will not be used for any other purpose but for photocopying the COW documents," Adjat was quoted by Ministry of Mines and Energy spokesman Bangun Usman Harahap as saying.
Bangun denied newspaper reports which alleged the money was given to legislators to ensure that they would not revise the 164 Seventh Generation mineral COWs or the 12 Third Generation coal COWs which are now under their examination.
Adjat said his office made about 50 copies of every draft contract to send to House members, other related government agencies, provincial governors and regents for examination. Another 500 copies are made if they get Presidential approval.
The 500 copies are distributed to contractors, legislators, all related ministers and their law offices, the Investment Coordinating Boards, Bank Indonesia, the governors, regents and heads of subdistricts where the concessions areas are located, and others.
Herman said investors understood that the processing of their applications was expensive, but they were only ready to pay for legal and realistic costs.
"I hope officials who handle the mining sector will protect the image of the government and legislators before the investors," said Herman. (jsk)