Antam calls for review of forestry law and waster regulation

Publicly listed state mining company PT Aneka Tambang (Antam) called for the review of the Forestry Law No. 41/1999 and the Hazardous Waste Governmental Regulation No. 85/1999, saying both were unfavorable to the mining industry.

Speaking during the Jakarta International Energy Conference on Wednesday, Antam's president Deddy Aditya Sumanegara said the clause of the Forestry Law No. 41/1999 which bans open pit mining activities in protected forests would hamper the growth of the country's mining industry.

He said if the law is strictly applied, 41 percent of the country's natural resources would be able to be developed.

He also criticized the Governmental Regulation No. 85/1999 as "too stringent, unreasonable and impossible for all mining companies and other industries to adhere to."

Deddy said both the law and regulation were currently among the main concerns of the country's mining industry.

Other important issues facing the industry are those related to implementation of regional autonomy, land provision and illegal mining, Deddy said.

As far as the implementation of regional autonomy is concerned, Deddy said, the mining industry would deal with difficulties in distributing revenue with the regional and central governments, the lack of understanding of the regional governments and communities about the mining industry.

The transfer from the central government to the regional government of the rights to issue mining permits and contracts of work also raised questions about the bankability of contracts signed by regional government heads, Deddy said.

With regards land issue, Deddy said, mining companies have to pay fair compensations for the land acquired from the local people, citing the growing understanding of the people in rural areas about their rights amid the emerging Indonesian democracy.

Deddy warned however that the government should protect the rights of investors once they have acquired land from the local community with fair compensation.

"Rouge elements within the society that wish to create unjust and destabilizing disturbances must be monitored closely through professional law enforcement," he said.

With regards illegal mining, Deddy noted that illegal mining activities, which have caused serious troubles to the mining industry, especially since the outbreak of the economic crisis, should be properly handled.

"Stricter law enforcement is needed together with proactive community development policies," Deddy said. (*)