Miners asked to pay reclamation funds in advance

A non-governmental organization, Greenomic Indonesia, has called on 13 mining companies recently allowed to resume their operations in protected forests to pay their reclamation funds in advance, Bisnis Indonesia reported Monday.

Speaking to reporters over the weekend, the organization's executive director, Elfian Effendi, said that paying the reclamation projects in advance would ensure that none of the companies would break their contracts.

According to him, the reclamation funds that have to be paid by the companies, which control about 925,000 hectares, could reach US$15.7 billion or equivalent to about Rp141.5 trillion. The amount is based on the assumption that each company will need at least US$17,000 per hectare to finance their reclamation projects.

"The funds should be paid in advance as their financial commitments to fully comply with their reclamation obligation," he said.

In addition, he said, the 13 mining companies should also provide environmental insurance against the possible environmental damages caused by their operation, such as flood or landslide.

The House of Representatives (DPR) has recently approved the government-proposed regulation in lieu of law to allow the operation of 13 mining companies affected by the issuance of the new forestry law two years ago, which bans the operation of mining companies in protected forests.

The operation of the 13 companies mostly owned by major foreign investors have been stopped since the issuance of the forestry law. The decision has, since, received a strong challenge from the affected mining firms, which have legally operated in the protected forest area along before the issuance of the law.

The issuance of the regulation No1/2004 has been widely criticized because it is against the government's commitment to protect the declining forest areas in the country. (*)