INCO, Freeport, Newmont won't be handed over to regional administration

The supervisory and management of the mining contracts of nickel mining firm PT INCO in South Sulawesi province, and gold mining firms PT Freeport Indonesia in Papua province and PT Newmont Minahasa Raya in North Sulawesi province would not be handed over to the regional administration, according to State Minister for Regional Autonomy Ryaas Rasyid.

Ryaas was quoted by the Media Indonesia daily on Thursday as saying that the various contracts including in the mining, oil and gas sectors would not be handed over to the provincial administration but would still be retained under the supervisory and management of the central government because they're contracts with signed with other countries.

He said that included in this nature was the management of airports and ship ports.

Ryaas was speaking to the press following a meeting with the local Makassar administration people on the plans to introduce the new regional autonomy law.

There has been increasing concerns among foreign mining companies that the regional autonomy plans would mean a revision in the mining contracts.

There has also increasing demand from the local people that the mining contracts of the three above companies must be revised or even terminated because of alleged environmental destruction and lack of commitment to developing local people and the economy.

Ryaas also said that among the many provinces in Indonesia, only the provinces of Papua, East Kalimantan, Riau and Aceh were ready to be independent in their budget without central government subsidy. (*)