Mining investment stalled by forestry law

An estimated of US$2 billion of mining investment plans in Indonesia have been stalled by the implementation of the forestry law that bans mining activities on preserved forests and an environmental regulation that bans the disposal of mining waste into the sea, Kompas reported on Tuesday.

One of the stalled investment project is the nickel project in one of a small island in Irian Jaya, according to the chairman of the Indonesian Mining Association, B.N. Wahju.

He said the nickel investment plan was especially stalled by the forestry law.

Mining businesses have taken the issue with then forestry minister Marzuki Usman, who promised to deliver their complain to then president Abdurrahman Wahid. Marzuki did write letter to Abdurrahman, but it was not responded.

Marzuki then asked mining businessmen to directly take the case to Abdurrahman, but then Abdurrahman was kicked out of office by the People's Consultative Assembly.

Another concern is the environmental regulation that bans the disposal of mining waste into the sea. Considering the archipelagic situation of Indonesia, such a regulation would only inhibit mining investment. (*)