Mining sector investments may drop due to poor security: Official

A senior government official has called on the government to adopt systematic methods to eliminate serious constraints currently faced by mining sector investors, Bisnis Indonesia daily reported.

Wimpy S Tjetjep, director general of geology and mineral resources at the Ministry of Energy and Mineral Resources, said over the weekend the constraints included security, the current law which prohibits mining in protected forest areas, and illegal mining.

?The mining sector currently faces very great challenges, notably security which is declining. This situation could lead to a drastic decrease in mining sector investments,? Wimpy said.

Wimpy?s remarks were clear reference to the recent bloody incident in Papua in which three workers of copper and gold mining giant PT Freeport Indonesia were killed. Unidentified gunmen fired shots at three cars carrying Freeport?s workers and others.

Meanwhile, the government is awaiting green lights from the House of Representatives to allow mining companies to operate in protected forests. Government officials and House members had been divided over the future of certain protected and preservation forest areas following the decision of the Ministry of Forestry to fully implement Law No. 41/1999, issued in 1999, which prohibits economic activities in such areas.

The forestry law had affected 150 mining investors which had signed contracts with the government before the law was put into force. (*)