Only 13 firms allowed to mine in forests: Nabiel

Muninggar Sri Saraswati, Jakarta

Minister of the Environment Nabiel Makarim assured on Friday that no more mining companies would be allowed to operate in protected forests despite the possibility of other concessionaires filing lawsuits against the government.

The House of Representatives endorsed on Thursday a government regulation in lieu of law (Perpu) that paves the way for 13 mining companies to resume operations in protected forests.

The Perpu's endorsement has raised public fears that the government would also give in to demands by more than 100 other mining companies to resume operations in protected forests.

Nabiel told The Jakarta Post on Friday that the government anticipated lawsuits by more than 100 other mining firms that wanted the same privilege.

"The risks (of being sued) have been minimized. We don't make the choices, they (the Ministry of Energy and Mineral Resources) do. The 13 companies would have most likely (won lawsuits) as they had already invested huge amounts of money here," he said.

He said over 150 mining companies had initially been given concessions in protected forests but his ministry managed to cut the number of firms allowed to operate to 13.

The other companies, according to Nabiel, had not started exploration or had not completed their documents or had invested very little in exploration.

Environmentalists have opposed the endorsement of Perpu No. 1/2004, which allows the resumption of operations by mining companies that signed contracts of work before the issuance of Law No. 41/1999 on forestry.

The Forestry Law bans open-pit mining in protected forests.

The 13 mining companies generate US$379.81 million in taxes and nontax revenue annually for the government.

The mining industry praised the issuance of the regulation, saying that it reflected the government's commitment to maintaining the investment climate and would spare the country from facing legal suits that may cause losses worth billions of dollars.

Environmentalists, however, warned that the country would suffer financial losses due to the destruction of forest resources, which provide a living for millions of Indonesians.

Nabiel said the government had also discussed the issues thoroughly. "The government has reduced the number of mining companies from 150 to 13. I think that is quite an achievement. It's a political decision that we must honor," he said.

According to Nabiel, his ministry would include the requirement for an Environmental Impact Analysis (Amdal) for mining companies.

"We will also continue to monitor them and ask them to minimize destruction to the forests," he said.

"Mining companies are also subject to Law No. 23/1997 on environmental management, which carries a jail term and a fine for those who decimate the environment," he said.

"They are subject to the law whether they destroy (forests) now or later. The government should not make any other legislation, just implement existing laws," Nabiel said.

The minister also clarified a recent motion of no-confidence by some non-governmental organizations that considered him incapable of stopping environmental destruction in the country.

"The ministry cannot not deal with every case. We are depending on regional administrations to protect the environment because we now live in the autonomy era," Nabiel said.

While considering the motion as defamatory, Nabiel said he had no plan to sue the NGOs because it would reflect badly on the country's effort to protect the environment.