Gus Dur orders use of force to protect mining industry

President Abdurrahman Wahid said late on Monday that the government was committed to protect mining investors in the country including through the use of military force.

The President or popularly called Gus Dur said that security and legal certainty was crucial to encourage foreign investors to enter into the country and help rebuild the crisis-hit economy.

"I have ordered the Minister of Mines and Energy (Susilo B. Yudhoyono) to provide protection for mining investment activity. If necessary use (military) force. Maintaining the rule of law is crucial," he said in response to a question raised by a participant of the Jakarta International Energy Conference.

The statement was also made following the three-week drama in which hundreds of protesting employees of East Kalimantan's coal giant PT Kaltim Prima Coal (KPC) controlled several key production facilities to demand, among other things, a 15 percent increase in salary. The protest had caused the company to stop production and announced a force majeure status to avoid penalty from foreign buyers.

But the company has resumed production since Sunday after the protesters agreed late on Saturday to withdraw their control over the key facilities.

Other mining companies have been haunted by the increasing threat from the surrounding villagers demanding higher compensation from land acquired in the past, environmental protection and from employees demanding for a better welfare condition. (*)