New mining bill seen as discriminative
Thursday, July 6 2000 - 03:00 AM WIB
The draft of the new mining law currently being debated is seen as discriminative, according to president of Rio Tinto Indonesia Noke Kiroyan.
Kiroyan pointed out that under the proposed law, the so-called mining business license (IUP) would only be given to foreign mining companies which have received technical recommendation from the Ministry of Mines and Energy.
He didn't elaborate.
Kiroyan was speaking at the House of Representatives commission VIII on mining and energy during a hearing session.
The government is currently proposing a new mining bill. Under the new mining bill, the current contract of work would be replaced by the IUP.
Kiroyan also said that the IUP was "weaker" when compared to the current contract of work system.
He added that under the IUP system, it was possible for the government to grant several licenses in one area. He said that this could create overriding problem which would be difficult to resolve. (*)