Forestry law seen as inhibiting investment in mining sector
Monday, March 20 2000 - 04:00 AM WIB
The implementation of Law No. 41 on forestry is seen as one factor inhibiting investment in the mining sector, according to a senior official at the Ministry of Mines and Energy.
Director for mining development and management at the ministry Simon F. Sembiring said that foreign investors who have received contract of work faced difficulties to implement their investment plans because of limitations stipulated by the forestry law, which was introduced in September last year.
"This (forestry) law clearly affects the investment climate in the mining sector because likely it or not it must be followed by the mining industry," Simon said.
He pointed out that one ruling of the forestry law stipulated that mining firms could not implement an open pit mining in a conservation forest area.
Simon said that one indication of the declining interest to invest in the mining sector was the low number of applications for the generation eight mining contract of work (COW), whose draft was currently being finalized.
He said that only 16 firms have so far applied for the generation eight COW, compared to 172 applicants for the generation seven COW. (*)