Perpu No1/2004 on mining goes to House plenary session

The special commission of the House of Representatives has passed the proposed law in lieu (Perpu) No 1/2004 to the House's plenary session for approval although many members of the commission are still divided over the need to implement such a law, Investor Daily reported on Thursday.

The plennary sessino is scheduled to be held today (Thursday).

The chairman of the special commission, Herman Widyanada, said in Jakarta on Wednesday the House's plenary session would decide whether or not the Perpu No 1/2004 could be passed into law. The approval of the Perpu would effectively allow some mining companies to resume operation in protected forest areas.

He acknowledged the representatives of the political parties in the special commission were divided over the issuance of the law in lieu (Perpu) No. 1/2004 proposed by the government to cope with the uncertainty in the operation of several mining companies in protected forests resulting from the introduction of new forestry law in 2002.

He, however, hoped that House members would unanimously approve the law during the plenary session. "If it is necessary the House members should avoid a voting process in approving the law," he added.

The new forestry law introduced by the government two years ago prohibits open-pit mining operations in protected forests. This law has drawn controversies because many mining concession areas awarded to mining companies overlap with the protected forests. As a result many mining companies have been forced to halt their operation.

If the proposed Perpu or the law in lieu No 1/ 2004 is rejected, the presidential decree which allows the resumption of the operation of 13 mining companies affected by the new forestry law will be no longer valid. (*)