APKASI supports gradual transition in mining authority, vows to honor contracts

Chairman of association of Indonesian Regents and Majors (APKASI) Syaukani HR expressed support over government's decision to gradually transfer mining authorities to regions.

Speaking in a discussion held by APCO Indonesia last week, Syaukani said that the decision was a wise move considering not all the regions were ready to implement the autonomy in mining sector.

"However, central government should not try to retain the power when certain regions are ready," he said.

Earlier, Minister of Energy and Mineral Resources Purnomo Yusgiantoro proposed that mining authorities be transferred gradually in 5 years to regional governments to give them time to prepare themselves.

Syaukani also promised that APKASI would also try its best to convince its member to honor mining contracts.

Unclear rule of play in the advent of regional autonomy era and uncertainties in political and social condition had created fear among mining investors. Many investors had suspended or stopped their exploration activities in Indonesia. (alex)