Investment in RI mining sector drops in 2001: PwC

Investment realization in Indonesia?s mining sector this year is certainly to drop significantly from previous years due to prolonged domestic economic and political problems, according to a survey conducted by consulting firm PricewaterHouseCoopers (PwC).

Other problems include uncertainties created by the poor implementation of the new regional autonomy law.

The Republika daily quoted PwC report as saying that the investment spending declined in all activities including in fixed assets purchase, development, and exploration and feasibility study.

The report said that investment has been in the downward trend since 1999, which saw investment of around US$1.5 billion.

The report said that investment in 2001 was likely to be less than $500 million compared to between $750 million - $1 billion in 2000.

PwC said that nine mining firms in production stage, and seven in exploration stage had planned between $226.4 million -$413.1 million investment for fixed assets purchase, $71.9 million for exploration and feasibility study, and 74.7 million for development activity.(*)