Foreign governments question RI mining sector

A number of foreign governments through their Indonesian embassies have questioned the Indonesian mining policy following the order issued by a district court in Tondano, Minahasa regency to shut down the mine operation of the U.S.-based Newmont Minahasa Raya in the regency last week, Republika and Astaga.com reported on Wednesday,

Director general of general mining at the Ministry of Mines and Energy Surna Tjahya said on Tuesday that the foreign governments questioned the certainty in investing in the country's mining sector and feared that similar incident could happen to other foreign mining companies.

Canadian ambassador Kenneth Sunquist, the deputy of the U.S. ambassador Michael Owen and Australian ambassador John Mc. Carthy had expressed their worries over the uncertainty in the Indonesian mining policy along before the court issued its verdict.

He said the foreign envoys expressed their criticism on the government's mining policy in a recent meeting with Coordinating Minister for Finance and Industry Kwik Kian Gie, Mines and Energy Minister Susilo Bambang Yudhoyono and State Minister for Environmental Affairs Sony Keraf.

Newmont, which operates a gold mining site in Minahasa regency, is not the only foreign mining company involved in conflicts with the local governments. The gold mine giant Freeport Indonesia has the same experience. But unlike, Newmont, which received a full support from the central government, Freeport has been under pressure from all sides; local authorities, central government, legislators, and green activities. They even called the government to revoke the contracts of the U.S.-based gold operator not only due to the impact of its operation on the environment but also due to the lack of concern to the local people.

Minister of Mines and Energy Bambang said that the U.S. government, through their representatives in the American embassy, has formally conveyed its concern over the Tondano court's death punishment against Newmont.

"They are really upset with the court decision. But the government could not intervene the court proceedings," the minister said. (*)