New forestry law threatens mining sector
Tuesday, March 28 2000 - 04:00 AM WIB
The mining industry has urged the government to revise the new forestry law No. 41/1999 because it is deemed to threaten existing mining projects.
"Almost all on going projects in the mining sector are being threatened by the new law," president of gold mining firm PT Newmont Nusantara Pacific Richard B. Ness was quoted as saying by the Bisnis Indonesia daily.
Ness said that the new forestry law neglected the mining contract agreed with the government, which had been used by investors as a basis for their investment plans.
He said that this would make the government prone to legal suit.
"The mining companies agree to protect the forest. But the detail of the new law must be reviewed," he said.
President of state gold and copper mining PT Aneka Tambang Deddy A. Sumanegara conceded.
He said that the new forestry law must be revised.
He said that many mining companies were reviewing their investment plans in the country.
But the two mining experts didn't clearly point out which part of the forestry law threatened the mining sector. (*)