House delays decision on mining projects in protected forests
Friday, September 27 2002 - 04:53 AM WIB
The meeting was attended by coordinating minister of economy Dorodjatun Kuntjoro-Jakti, minister of energy and mineral resources Purnomo Yusgiantoro, minister of forestry M. Prakosa and minister of Eastern Indonesia development Manuel Kaisepo, while the House was represented by Commission III and VIII, which oversee mining and forestry sectors.
The government?s team led by Dorodjatun had asked the House to allow 22 mining projects to resume their activities in protected forests.
?Mining contracts were given before Forestry Law No 41/ 1999 was enacted. A substantial amount of fund had been invested in those projects and we don?t want those investors bring the government to arbitration court for not allowing them to resume their operations. The consequence could be damaging to Indonesian credibility in certainty of Law,? said Minister Dorodjatun.
?Moreover, the 22 projects are located in the Eastern part of Indonesia, which badly need investment, especially in the infrastructure to push the economy. Allowing those project to resume would give boost to investment and infrastructure development in Indonesia as those companies will bring billions of dollars in investments to Eastern Indonesia,? he said.
Minister of forestry Prakosa, which has been stubbornly against the plan to allow the resumption of the 22 mining projects, had also seemed to change his mind.
?What we need is political support from the House of Representative, because those mining contracts are given prior to enactment of law 41/1999. Therefore we are seeking parliamentary support to allow the resumption of those projects,? he said.
Comission VIII, which oversees mining sector, had also fully supported the government?s proposal but Comission III, which oversees forestry sector, insisting that they need more time to evaluate the proposal and asking for more data.
?We don?t want to make hasty decision that we will regret later,? the commission said.
It was not immediately clear when the next meeting will be held.
More than 150 mining projects had been on halt since the enactment of Forestry Law No. 41/ 1999, which bans open pit mining in protected forest, causing. The ban practically paralyzed new investment in mining sectors, as most of the potential resources in Indonesia are located in protected forests. The government had prioritized 22 mining projects which it was considered has potential to be quickly developed to be allowed to resume activities.
Among those projects that are put on halt are Weda Bay Mineral?s giant nickel project in Halmahera, Newcrest?s gold project in Central Sulawesi, BHP Billiton?s Gag Island nickel project, Freeport Indonesia?s Blok B copper project and Newmont?s North Sumatra gold project.
Under the forestry law, the change in forest utilization that has significant environmental and social impact must be consulted with the government.(alex/godang)