New regulation on protected forest rent only for 13 companies

President Susilo Bambang Yudhoyono said that only 13 mining companies that had previously obtained permits would be allowed to avail themselves of the newly-released Government Regulation No. 2/2008 to conduct mining activities in protected forests.

Speaking after a limited Cabinet meeting at the Forestry Ministry office in Jakarta Friday, Susilo affirmed that the government would not issue other business licenses for other companies to conduct mining activities in forest conservation areas.

The President said that the government regulation was issued to regulate the companies that had obtained permit to mine in protected forests, especially with regard to the levies they contributed to the state. The collected funds, the President said, would be earmarked for funding the forest protection projects, including rehabilitation and reforestation.

Meanwhile, Minister of Forestry MS Kaban said that the new regulation could potentially generate non-tax revenue of Rp 600 billion per year for the government from the levies collected from the 13 mining companies.

The new regulation allows mining companies to conduct mining activities in conservation areas provided that they pay some fees to the government. Under the previous regulation, mining companies can only operate mines in protected forests if they provide land compensations of the same size to be converted into forests.

According to Kaban, the new regulation will give certainty for mining companies, especially for 13 miners that had obtained permits to conduct mining activities in conservation areas and had invested huge funds in the activities.

The 13 companies (see table) got their permits from the previous administration of President Megawati Soekarnoputri.

Kaban said the new regulation would apply only for provinces with forest areas accounting for more 30 percent of their territories. ?In the provinces such as Bali, Lampung and Java where forests account for less than 30 percent of the territories, mining companies have to provide land compensations (to be allowed to conduct mining activities in protected forests)," he said. (*)

No	Company	Product(s)	Status	Location
1	PT Freeport Indonesia	Copper and gold	Production, Exploration	Papua
2	PT Aneka Tambang (Antam)	Nickel	Production	North Maluku
3	PT Aneka Tambang (Antam)	Nickel	Exploration	Southeast Sulawesi
4	PT Karimun Granit	Granite	Production	Riau island
5	PT Indominco Mandiri	Coal	production	East Kalimantan
6	PT International Nickel Indonesia (Inco)	Nickel	Production	South, Central and Southeast Sulawesi
7	PT Natarang Mining	Gold	Construction	Lampung
8	PT Pelsart Tambang	Gold	Exploration	South Kalimantan
9	PT Interex Secra Raya	Coal	Feasibility Study	East and South Kalimantan
10	PT Nusa Halmahera Minerals	Gold	Production, Construction, Exploration	North Maluku
11	PT Weda Bay Nickel	Nickel	Exploration	North Maluku
12	PT Sorikmas Mining	Gold	Exploration	North Sumatra
13	PT Gag Nickel	Nickel	Exploration	Papua