Rio Tinto delays its investment in RI

Australia’s mining company Rio Tinto has withhold its investment plans in Indonesia despite the huge geological potential, the Investor Daily Indonesia reported in its Wednesday edition.

Rio Tinto is still waiting for the new law on general mining and coal, which is expected to give legal certainty for investors.

“The existing investment law is not that attractive as the geological potential. Besides, several rules on forestry and environment areas are not only overlapping as well as contradicting, but also the legal certainty is at the minimum level,” Rio Tinto Indonesia’s deputy director for external relations Anang Rizkani Noor said recently in Jakarta.

Anang said Rio Tinto has already conducted preliminary studies to find nickel in Kalimantan and Sulawesi and Sumatra, but until this day the company has not yet applied for the license from the government with the reason that there are no laws that can be taken as guidance.

“Still it is not clear about the nature of investment laws in Indonesia. Therefore many investors, including Rio Tinto, are still adopting a wait and see approach although they've already selected several areas (for their investment plans),” Anang said.(*)