Indonesia to evaluate regional control of mining industry

The government will form in the near future a task force to asses the readiness of regional governments to administer the mining industry, Mines and Energy Minister Purnomo Yusgiantoro said Wednesday.

"The task force will consist of representatives of mining companies, regional governments and the central government," Purnomo told journalists. Purnomo didn't specify when the task would be formed.

The central government will only transfer mining authority to a particular regional government after all members of the task force declare it is ready to assume such authority, Purnomo said.

Monday, the government began implementing landmark regional autonomy measures to appease disgruntled provinces. Jakarta plans to give administration rights in various industries - including mining - to regional governments although it remains unclear which powers the central government has already transferred.

The plan to transfer mining authority to regional governments has raised concerns among international mining companies operating in Indonesia that regional governments will take advantage of the new power to tax them. That concern by the companies prompted the government to delay granting local governments control of the mining industry.

Purnomo said all regions should be governing local mining within five years.

International companies mine among other things gold, copper, coal, nickel and silver in Indonesia.(*)