Govt to limit size of mining exploration area per company

Coordinating Minister for the Economy Hatta Rajasa said that the government plans to limit land available for exploration by a single mining company to 25,000 hectares in an effort to maintain sustainability of natural resources in the country.

?We are considering providing each mining company with at most 25,000 hectares of land to be managed,? he said as quoted by Jakarta Globe.

?We are aware that this policy may have pros and cons, but we are very concerned about the sustainability of Indonesia?s natural resources. Therefore, a new system in developing natural resources is needed.?

The minister, however, said that the government will consider providing additional land for mining companies, but only to build supporting facilities such as housing for employees.

Only large investors benefit from the current system of natural resources management, but the country suffers losses, especially the people, he said.

?For instance, investors that are exploiting tens of thousands of hectares of forest areas, they do not get the local people involved,? he said. (*)