"Seriousness deposits" may be abused: source
Tuesday, April 10 2001 - 04:00 AM WIB
The so-called "seriousness deposits" of mining investors kept at the ministry of mineral resources and energy may have been abused as some investors who wanted to withdraw the funds have so far been unsuccessful, according to a source.
Investors normally put the deposit at the ministry to obtain exploration license. The fund is being managed by the secretariat general of the ministry.
The source said that the ministry had promised investors that they could easily withdraw the deposits if they pull out from mining activity as long as they have followed the requirement including making regular report to the government about their mining activity.
The source said that the seriousness deposit was set at between Rp 10,000-Rp 20,000 per hectare depending on the size of the mining area and the type of mining license. Since there are hundreds of exploration licenses, the seriousness deposits are believed to amount to billions of rupiah (US$1=Rp 10,700) held by the ministry of mineral resources.
The source called on the Supreme Audit Agency (BPK) or the State Finance Comptroller (BPKP) to launch an audit into the use of the seriousness deposits.(R. Amoros)