North Barito plans new investment policy

The North Barito Regency administration in Central Kalimantan plans to set up an investment guarantee fund, under which investors planning to invest in the area would be required to set aside a certain amount of money upfront as a guarantee of their seriousness in investing in the region.

The local Banjarmasin Post daily Thursday edition quoted Regent Achmad Yuliansyah as saying that the requirement was part of measures to avoid speculators.

According to the paper, an investor planning to explore mining deposits in the area would be required to set aside Rp 10 million up front.

Achmad said that the funds, to be deposited in the local government's bank account, will be returned to the investors once their mining or investment contract has expired. But the funds would not be returned to the investors if they decided to cancel their investment plans.

He said that so far there are three investors which have deposited such funds including a Chinese company called China Xinshidai Holding Ltd, which plans to mine a 47,500 ha coal concession in the Lahei District.

Another company is PT Sumatera Timur Indonesia, which plans to mine coal in a 19,400 ha site in the Mount Gunung Timang area.

The third company is also a coal miner caller PT Bharinto Ekatama, which plans to mine a 22,000 ha concession in the Teweh Timur District.(*)