NGOs up pressure on forest mining
Rendi A. Witular and Fabiola Desy Unidjaja, Jakarta
A coalition of non-governmental organizations (NGOs) has vowed to continue its campaign against 13 mining firms that have been allowed to resume open-pit mining in protected forests, upon a controversial government regulation in lieu of law (Perpu) endorsed by the House of Representatives.
The coalition alleged the House made the decision in response to pressure from foreign governments, and that several government officials and legislators had taken bribes to further the interests of certain parties.
Longgena Ginting, executive director of the Indonesian Forum for the Environment (Walhi), told The Jakarta Post on Friday that aside from taking legal recourse against the regulation, the coalition would also mobilize local communities to disrupt the firms' operation "in order to protect the forest and the local environment".
The coalition is to file a complaint with the Constitutional Court, the State Administrative Court and the District Court in an effort to have the regulation annulled.
The House voted 131 against 102 during a plenary meeting on Thursday in favor of enacting Government Regulation in Lieu of Law No. 1/2004, which allows 13 mining firms to resume operations in protected forests.
Government Decree No. 41/2004 was issued in May to facilitate the then-pending regulation, as the government deemed the concerned firms serious in their threats to take their cases to the international arbitration court.
At least 150 mining firms were obliged to stop operations over the past few years following the 1999 Forestry Law, which bans open-pit mining in protected forests.
Longgena said the government's hand was forced primarily by pressure from the Australian government, which held 12 closed- door meetings with high-ranking officials before the regulation was issued in March.
"The government and legislators have sold out," she said.
Australian Embassy spokesperson Elizabeth O'Neill told the Post that several meetings between Australian and Indonesian representatives had indeed taken place, but dismissed the allegation that they were not transparent.
She said Australia had been concerned for some time about the impact of the 1999 Forestry Law on Australian mining firms operating in the country, as many of them had signed contracts with the government prior to 1999 to develop mineral resources and had already made significant investments.
Meanwhile, Longgena also said the coalition suspected several legislators of taking bribes prior to the start of the House plenary session to vote on the regulation, when several State Secretariat officials had been seen lobbying the legislators.
"We haven't any strong evidence yet. But it is suspicious, because some legislators who strongly opposed the regulation during the House special committee meeting ended up approving it at the last minute," said Longgena.
As previously reported, the majority of legislators on a special committee tasked with deliberating the regulation had strongly opposed the regulation and pledged to reject it during the plenary session.
Deputy State Secretary Erman Radjagukguk denied his office had arranged any bribes to procure legislators' votes.
"This matter does not concern us. You should ask the relevant ministries over the allegation," said Erman, indicating the Ministry of Energy and Mineral Resources and the Ministry of Forestry.
Meanwhile, director general of geological and mineral resources Simon Sembiring told the Post the regulation was expected to spur new investment of about US$17 billion for the next three years, not only in the mining sector, but also in other areas.
The country would also enjoy benefits in annual revenue of about $400 million drawn from taxes and royalties, he added.
I-box
Major shareholders of 13 mining firms affected by Perpu (as of November 2003)
Name Shares (%)
PT Freeport Indonesia
- Freeport McMoran Copper & Gold 81.28
- Indonesian government 9.36
- PT Indocopper Investama Corp 9.36
PT Karimun Granite
- PT Pendawa Sempurna 77.75
- PT Tatawahana Dutapersada 17.25
- PT Gitamakmur Sentosa 20.16
PT INCO
- Inco Limited 58.70
- Sumitomo Metal Mining Co Ltd 20.10
PT Indominco Mandiri
- Heidelberg Cement AG 61.70
- Indonesian government 16.90
- PT Mekar Perkasa 13.50
PT Aneka Tambang (Antam)
Buli and Bahubulu concessions
- Indonesian government 65.00
PT Natarang Mining
- Taweti Lampung Sumatera Ltd 70.00
- Base 15.00
- PT Liwa Krui 15.00
PT Nusa Halmahera Mineral
- Newcrest Holdings Pty Ltd 82.50
- Antam 17.50
PT Pelsart Tambang Kencana
- Pelsart International 85.00
- Antam 15.00
PT Interex Sacra Raya
- Frans Nongka 59.20
- Ani Jubaidah 15.00
- Rinny Tinggogoy 14.00
PT Weda Bay Nickel
- Strand Minerals Pte Ltd 90.00
- Antam 10.00
PT Gag Nikel
- BHP Asia Pacific Nickel Pty Ltd 75.00
- Antam 25.00
Sorikmas Mining
- Aberfoyle Pungkut Investment 75.00
- Antam 25.00
Source: House of Representatives