Mining bill facing deadlock
Friday, October 5 2007 - 02:09 AM WIB
After being deliberated for two and a half years, the prospect for mineral and coal resources bill to be passed into law soon has dimmed as the government and House of Representatives (DPR) are still unable to reach an agreement on transitional provision, Kompas Daily reported on Friday.
Chairman of the House' s task force for the deliberation of the bill Agusman Effendi said in
“As a result, the bill was returned to the Special Team to be deliberated by the head of (the House's) deliberation team and the Minister of Energy and Mineral Resources. We need to know the government's standpoint on the transitional provision,” he said.
The House's factions are in disagreement over the matter. Some of them propose that the existing mining contractors be given between two and five years to adjust their contracts to the new law.
“No agreement has been reached as to when the existing mining contractors have to follow the new law. The government wants the existing contracts to be respected until they expire. After that, (the contractors) should follow the new law," Director of Mineral and Coal Business Development MS Marpaung said.
Under the bill, contractors will receive "permit" rather "contract of work". A permit will last 20 years, compared to 30 years under the contract of work system. Furthermore, the bill also puts limits on the size of concession that mining contractors can apply for. Other new rules stipulated in the bill is that mining contractors have to build smelters in Indonesia and the royalty payable by contractors to the govenrment should be improved (*)