Mining producers oppose Minister of Forestry?s regulation

The members of the Indonesian Mining Association (IMA) and Indonesian Coal Mining Association (ICMA) have rejected some parts of the Minister of Forestry?s Regulation No. P.14/Menhut-II/2006 regarding the Guidelines on Leasing and Utilization of Forests.

According to them, the regulation affects them and it is generally very difficult to implement it.

The regulation?s Article 17 of the Section 3 clearly states that if the person who leased the forest fails to provide land compensation within two years, he will be charged with a royalty of 1 percent of the total production.

The chairman of the IMA and the ICMA Jeffrey Mulyono said in fact the businesses do not mind the implementation of the Minister of Forestry?s regulation and will try to follow the procedures mentioned in the regulation.

?But we object to the royalty because it will be like an additional charge. All mining industries will have objection as there is no such practice found in other places,? Jeffrey said on the sidelines of the Coal 2006 at JHCC on Friday.

Jeffrey said the mining industry players are ready to discuss with the Ministry of Forestry as well as the Ministry of Energy and Mineral Resources.

?Pak Pur (Minister of Energy and Mineral Resources Purnomo Yusgiantoro) will arrange a meeting with all the stakeholders as soon as possible. This must be resolved through compromise so that it will not affect all parties concerned,? Jeffrey said. (Godang)