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)