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Ministry criticized over photocopying cost

| Source: JP

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)

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