House accepts controversial mining regulation
Thursday, July 15 2004 - 10:51 AM WIB
Perpu No.1/2004 was accepted into Law after 131 legislators voted to accept the legislation and 102 members were against.
The result will enable some 13 companies to resume their operations, which had been halted for years after enactment of forestry law that banned open pit mining operations in protected forests. The companies including world?s giant resources company BHP Billitons?s nickel project in Gag island, Weda Bay?s nickel project in North Halmahera, Antam?s nickel project in South East Sulawesi and Freeport McMoRan?s copper concessions in Irian Jaya.
The House?s three large factions; ruling party PDI-P, Golkar and PPP accepted the law while other factions such as PKB, PAN and other smaller factions are against the proposal to put the Perpu into Law.
Legislator Gusti Iskandar from Golkar faction told Petromindo.Com that the acceptance would mean that the Perpu would be automatically turned into Law. ?But it would take sometime before it can be formalized,? he said.
Minsiter of Forestry Mohammad Prakosa, who is known as staunch supporter to prohibit mining in protected forests, said he ?could accept the House?s decision?. But he declined to give further comment.
Government Regulation in Lieu of Legislation No. 1/2004 provides that all mining contracts entered into with mining firms before the implementation of Law 41/1999 on forestry must be honored.
Law No. 41/1999 prohibits open pit mining in protected forests. Open pit mining is a common method employed by mining firms in this country.
The issuance of Regulation No. 1/2004 sparked criticism from various sides worried that it would only pave the way for a number of mining firms to resume operations in protected forests.
However, some legislators and government officials also worried that if the companies are not allowed to resume their operations, Indonesia could face huge arbitrary lawsuits.(godang)