DPR to allow mining operation in protected forests

Members of the House of Representatives (DPR) will have no choice but to approve the government's regulation No.1/2004, which will allow the resumption of the operation of 13 mining companies in protected forests, in order to avoid a legal fight, Kompas reported on Tuesday.

The chairman of the House's legal commission Herman Widyananda said in Jakarta on Monday that if the proposed regulation was turned down, the Indonesian government could receive legal fight from the affected companies through the international arbitrary.

"The decision will be made on Thursday but there are concerns that if the regulation is rejected, the affected companies will take the Indonesian government to the international arbitrary," he said.

The government has issued the law in lieu (a type of regulation) to allow the operation of 13 mining companies affected by the issuance of the new forestry law two years ago, which bans the operation of mining companies in protected forests.

The operation of the 13 companies mostly owned by major foreign investors have been stopped since the issuance of the law. The decision has, since, received a strong challenge from the affected mining firms, which have legally operated in the protected forest area along before the issuance of the law.

"If the affected companies sue the government through the international arbitrary, the penalty or compensation that has to be paid by the government could reach a half of the annual state budget," he said.

The issuance of the regulation No1/2004 has been widely criticized because it is against the government's commitment to protect the declining forest areas in the country. (*)