Perhapi supports amendment to mining contract of works
Tuesday, December 5 2000 - 02:30 AM WIB
The Indonesian Mining Experts Association (Perhapi) expresses its supports for amendment to the mining contracts of works so that they would be in line with the spirits of regional autonomy that would come into force starting January 2001.
Perhapi chairman Latif Baki said in Jakarta on Monday that such an amendment should be conducted soon to give legal certainty to investors.
"We agree with the planned amendment of the contract of works to face the autonomy and fiscal balance between central and local administrations so that investors will have legal certainty," he said.
Calls for amendment for mining contracts of works - and also other mining contracts such as mining license (KP) and coal mining agreement (PKP2B0 - have been on the rise following the planned implementation of regional autonomy starting January, 2001.
The president of mining interest PT Rio Tinto Indonesia, Noke Kiroyan, said that the amendment should be negotiated with the companies, so that the mining contracts would be able to adjust to the new development, especially the introduction of regional autonomy.
According to Latif, a number of articles in mining contracts of works that needed to be amended included those demanding investors' commitment for environmental protection, community development and royalties.
"We need to deal especially about the royalty because it deals directly to the rights and income of local administrations. Although this matter has been regulated in the Autonomy Law and Law on Fiscal Balance, the amount of royalties and the division of royalties have not be set," he said.
He added that Perhapi was currently studying possible amendment of the mining contracts of works in line with the mining bill currently being drafted by the government.
He noted that the new mining bill was still incomplete as it did not yet accommodate local administrations' interests, including matters related to traditional rights of local people over their lands and environmental protection in line with local administrations' spatial plan. (*)