Development of mining industry hindered by govt policy

Many mining industry businessmen, who temporarily stop their production due to economic crisis in Indonesia, are confused whether to operate again due to the government's confusing policies, Astaga.com reported on Friday.

"Based on information from both local and foreign mining companies, most of their problems disclosed to IMA consist of complaints about the overlapping policies, which prevent them from further expanding," PL Coutrier, executive director of the Indonesian Mining Association (IMA), said in Jakarta on Friday.

Government Regulation (PP) No.85/1999 on wastes, which revised PP No.18/1999, for example, consists of only three new articles, while the other 17 articles of the old regulation are still valid, Countrier said. Interpretation on wastes is also varying because of the overlapping regulations, he said.

The development of the mining industry, he said, is also hindered by the many unlicensed miners in operation in the fields.

"The regulation on regional autonomy also causes problem because it deals with work contracts between the companies and the government. Can a work contract with an international company be done only with the regional government because it is closely related with confidence to the central government?" he asked.

Taxes and royalties, he said, are also confusing, even though they should have already been adjusted. Forestry regulations, which ban miners from operating in conservation and conversion forests, also hinder the mining industry, he added. (*)