Govt asked to issue guidelines on autonomy law

Mining operators have called on the government to issue a guidelines on the autonomy law which will be implemented beginning next year in order to avoid conflicts among government officials in the province, Bisnis Indonesia reported on Friday.

Graeme L. Robertson, the president of the East Kalimantan-based mining operator PT Adaro Indonesia, said in Jakarta on Thursday that many mining firms still did not know how the new law would affect their mining operations.

The new law, which will become effective beginning next years will give provincial administrations more authority in managing their natural resources. The government levels in district, regency and province will also get a higher share from the royalties payment, which at present mostly go to the central government.

Robertson said that the new law would be much more effective to curb the growing resentment from local communities because they, unlike before, will also be able to enjoy the benefit from the mining operation in their provinces.

He, however, warned that the new law could encourage the local administrations to over act in empowering their economy if the central government failed to provide clear-cut guidelines in its implementation.

The local administrations could misinterpret the new law by for example issuing new regulations which are against the contracts of works awarded to mine operators such as by charging new payment not covered in the contracts, he said. (*)