Ruling No. 75/2001 gives legal certainty to mining investors: IMA

The new government ruling No. 75/2001 will provide legal certainty to mining investors in Indonesia, according to chairman of the Indonesian Mining Association (IMA), Benny Wahyu.

He said that legal certainty was crucial for implementing investment plans in the mining sector.

The ruling No. 75/2001 on general regulations for mining activities was issued by the government late last year amid concern of overlapping authorities between the central government and local government following the implementation of the regional autonomy law. It is also seen as a temporary ruling until the government proposed new mining law has been approved by the House of Representatives.

The implementation of regional autonomy in 1999 caused jitters among mining firms operating in remote areas in the country as they feared local authorities might issue rulings in contradiction with their contracts of works.

Some mining companies suspended their investment plans two years ago due to this kind of legal uncertainty. But reports said recently that some of the mining companies now plan to resume their investment activities following the issuance of the ruling No. 75/2001.(Amoros)