Mining industry will be involved in judging regions' readiness: Minister
Wednesday, December 20 2000 - 07:00 AM WIB
Minister of Energy and Mineral Resources Purnomo Yusgiantoro said on Wednesday the central government would transfer mining rights to the region gradually depending on the readiness of the regions and the mining industry would be involved in judging the readiness of the regions.
Purnomo said in a yearend press conference that the policy would be stipulated in the presidential decree being drafted by the ministry.
Purnomo said the government estimated the transfer of the mining rights to the regions would be completed in five years.
"But, the regions need not to wait for five years to take over the mining rights if they can prepare themselves sooner than the schedule. The rights will be immediately transferred to a region, once it is considered ready to exercise the rights, " Purnomo said.
A special forum, comprising the central government, regional administrations and the mining industry, would be established to judge whether a region is already capable to take over the mining rights, Purnomo said.
Purnomo however did not provide details on the timeframe for the issuance of the decree.
The government has planned to implement the Autonomy Law No. 22/1999 and the Revenue Sharing between Central and Regional Governments Law No. 25/1999, which will allow the regions to manage their own natural resources and obtain a larger share in the government's revenue from the development of their natural resources.
Foreign investors, especially mining investors, whose operations would be predictably heavily impacted by the decentralization program, have voiced concerns that the new policy would probably hurt their operations, citing the lack of skilled human resources and modern facilities and organization in the regions.
The regions initially insisted that the central government immediately transfer the mining rights, rejecting the gradual transfer option.
But, Purnomo recently said, the regional administrations have eased their stance on the issue, showing willingness to accept the gradual transfer option. (Alex)