Govt wants House?s hands off contract awards
Tuesday, November 12 2002 - 08:16 AM WIB
Geology and Mineral Resources Director General secretary R. Sukhyar said the government was continuing to draft mining contract standards.
?DPR will not be directly involved in the awarding of mining contracts because mining contract standards will be decided with House approval,? Sukhyar said. He declined to elaborate the contract standards.
It has yet to be seen whether DPR will agree on the policy.
President Megawati Sukarnoputri is expected to sign and submit the mining bill to DPR for deliberation next week, and if that happens, the House may pass the bill into law next March, Geology and Mineral Resources Director General Wimpy S. Tjetjep said on Tuesday.
Unlike the current mining law which was issued in 1967, the bill refrains from stating that House approval is required for mining contract signing. Moreover, the bill does not mention mining contract standards.
Under the 1967 law obliges the government to get House approval before awarding the so-called Contract of Work (KK) and Coal Contract of Work (PKP2B), which are reserved for foreign investments. House approval is required whenever the government plans to change or revoke such investments, thus giving investors legal certainty.
Sukhyar said mining contract standards will be stipulated in a government decree which will be issued to implement the new mining law. Moreover, the mining contract standards will be formulated in such a way so that they will provide legal certainty for mining businesses, Sukhyar said.
The mining bill dictates that minister of energy and mineral resources, provincial governor and regent/mayor have authority to sign mining contracts including those involving foreign investments.
Sukhyar said the government is drafting six decrees to implement the new mining law.
It remains unclear when DPR can start deliberating the bill. (godang)