Australia seeks security guarantee for its investments

Australia is seeking a security guarantee from the Indonesian government for the country's investors especially those operating in Kalimantan, which have often become the targets of the local residents' resentment, Kompas daily reported on Monday.

Speaking to reporters during his visit to the gold mine site of PT Indo Muro Kencana in North Barito regency, Central Kalimantan last week, the Australian ambassador to Indonesia Richard C. Smith said that the security guarantee was needed to ensure that foreign companies particularly those from Australia could continue their operations.

Richard said that a number of Australian companies have invested a lot of money especially in the mining sector in Kalimantan, absorbing at least 400 local workers.

With the security guarantee from the local governments either in provincial or regency levels, it would be difficult for the companies to carry their operations optimally.

Foreign companies' operations especially in Kalimantan have often become the targets of resentment from the local people since the downfall of the former authoritarian leader Soeharto. Some of the companies have been forced to quit their operations.

The local residents, who were often forced to surrender their land to make way for the development of mining operations during the Soeharto administration, have often launched protests and some time blocked the operations of the mining companies to benefit from the easing of the state administration.

They demanded compensation for their land, which they claimed has been illegally occupied by the mining firms.

Indo Muro is a subsidiary of Australian firm Aurora Gold. (*)