Mining expert urges govt to improve ruling, investment policy to appease investors

Secretary general of the Indonesian Mining Experts Association Juangga Mangasi Mangunsung said that the weak legal infrastructure and lack of clear mining policy in the country's mining sector had created worries among investors, prompting them to gradually pull out from exploration activity.

Juangga was quoted by the Neraca daily Wednesday as saying that the government must improve the current mining policy and ruling to appease investors. He added that it was just a normal thing for investors to demand a strong and clear legal framework because investment in the mining sector is highly risky.

He particularly pointed out that the draft of the new mining law should be designed in line with the new autonomy law.

Juangga was commenting on the decision earlier this week that PT Newmont Pacific Nusantara was planning to conclude its Greenfield exploration in Indonesia due to the lack of clear legal framework and mining investment policy.

Newmont particularly pointed out that the draft of the new mining law was not "bankable" for the mining industry.(*)