Parliament unlikely to deliberate new mining law next year: Official

The House of Representatives (DPR) is unlikely to be able to deliberate the government-proposed general mining bill next year as lawmakers would be busy with the 2004 general elections, an official said over the weekend as reported by Suara Pembaruan daily.

The President has also yet to submit to DPR the mining bill that had been prepared by an inter-ministerial team, Director General of Geology and Mineral Resources Simon F. Sembiring was quoted as saying.

“DPR would not be able to deliberate the bill next year because legislators will be too busy with the general elections,” Simon said.

Indonesia will hold elections for legislative assemblies (DPR, DPD and DPRD) in April 2004 and presidential election three months later. For the first time in the country’s history, voters will directly elect president and vice president in the elections.

Simon did not provide details of the bill, which had been long awaited by mining investors.

The current Mining Law of 1967 is considered ineffective because many of its clauses are in conflict with the 1999 Autonomy Law. Meanwhile, the mining bill to be submitted to the parliament tries to strike a new balance between the interest of mining investors and the nation's.

In the meantime, Richard B. Ness, president director of Newmont Pacific Nusantara, told Petromindo.com the new general mining bill would predictably cause more damage to the investment climate in the mining sector because it does not take into consideration the benefits of modern development practices and gives little attention to efforts to multiply benefits to communities, trade policy and infrastructure development. (*)