Fate of mining operations in protected forests to be decided next month

The fate of mining companies operated in protected forests will be decided during a meeting between members of the House of Representatives (DPR) and the government in Jakarta on July 1, Minister of Forestry Muhammad Prakoso, Koran Tempo reported on Tuesday.

Prakoso said that the legislative would be represented by the House commissions in charge of environment and energy, and forestry and agriculture, while the government would be represented by the ministry of forestry, the ministry of energy and mineral resources and the office of the state ministry for environmental affairs.

Awal Kusuma, a member of the House commission on environment and energy, said that most of the House members actually opposed the plan to allow the operation of certain companies in protected forests. "But we face a dilemma, if we ban them, the government may be required to pay compensation of up to US$12.2 billion to those affected," he added.

The introduction of the forestry law last year has caused controversies over the operation of companies in protected forests. At least 22 mining companies have received the government approval to operate in the protected forests along before the introduction of the new law.

The government has agreed to allow four of the 22 companies PT Gag Nikel, PT Weda Bay, PT Citra Palu Minerals and PT Nusa Halmahera Minerals to continue their operation in the protected area. But it will be difficult for them to carry out their operation if the law is now revised. (*)