Rights and environment pose new challenges to mining sector

Rights and environment pose new challenges to mining sector

JAKARTA (JP): Minister of Mines and Energy I.B. Sudjana
yesterday warned that human rights and environmental problems
would pose the biggest challenges to the mining and energy sector
in the future.

"All of us should pay special attention to these issues. This
is particularly important in view of the upcoming general
elections, and the attendant raising of the political
temperature," he told officials of the Ministry of Mines and
Energy at the opening of a three-day working conference here
yesterday.

He pointed out that the general public is becoming
increasingly aware of human rights and environmental issues in
the mining and energy sector.

Sudjana urged the ministry's officials to increase the
participation of the public, and particularly those living near
mining sites, in mining operations.

"We have to formulate a concept that addresses the social
problems caused by mining exploration and exploitation. We also
need to improve our environmental management," he noted.
"If we don't take this into consideration, certain people will
use it to their benefit," he warned.

Sudjana noted that there are new developments that are not
covered by the sixth Five Year Development Plan, which is now in
its third year.

He said that adjustments should be made to deal with new
developments, like keener competition in international markets
and free trade areas.

He hailed the completion of the Indonesian geological map,
which shows potential mining sites all over the archipelago.

"We should use this geological map to attract private
investment, which has been on the rise in the past five years.

He noted increasingly vocal demands for deregulation in
downstream mining industries, such as oil refineries.

"We should seriously consider allowing the private sector to
enter the oil refining industry," he said.

Sudjana stressed the need to lower the cost of electricity
generated by geothermal steam.

He said the private sector, which has become more active in
power generation, should also be encouraged to invest in the
development of power transmission lines.

He said new mining contracts should clearly mandate the
transfer of technology and skills to locals.

"Such programs should be set up in such a way that they can
easily be monitored,"he added. (13/vin)