Ministers to discuss KEM case with foreign investors on Friday

Newly-appointed State Minister of Investment and State Enterprises Rozy Munir said he together with Minister of Defense Juwono Sudarsono would meet with foreign investor community in Jakarta on Friday to discuss several things, including the land dispute between gold mining company PT Kelian Equatorial Mining (KEM) and the local villagers.

Speaking on Thursday on the sidelines of an international seminar on state enterprises in Bali, Rozy maintained that KEM's case would not affect Indonesia's foreign investment prospects.

"I don't think so. Don't worry," he said when asked by reporters whether KEM's case would create fears among foreign investors.

He noted that the statistics showed the approved foreign investment significantly increased over the past three months.

"Although the value and the number of projects were not huge, but the important thing is there is an increasing trend," he said.

He said his office would continue to boost efforts with foreign investors to get first hand information about problems faced by investors in the country.

KEM, which operates a gold mine in Long Iram district, Kutai regency, East Kalimantan, was forced to suspend productions late last month due to the lack of logistical supplies as the result of blockade by the local villagers.

The villagers blocked the road leading to the gold mine for several weeks to pressure the company to pay compensation for their land.

The blockade has caused concerns among legislators, governmental officials, and mining analysts, who were worried that the action would undermine the government's efforts to lure investors into the country. (*)