Newsletter
Government again pushes parliament to approve 13 mining operations
 
Indonesian government has again requested that the national parliament 
(DPR) approve the resumption of 13 mining operations in areas that 
overlapped with the zone of protected forest. Mining permits for those 13 
operators should be promptly issued in order that the operators can start 
again with their activities. 

Coordinating minister of economy Dorodjatun Kuntjoro-Jakti after opening a 
scientific seminar held by the association of Indonesian geologists (IAGI) 
together with the association of Indonesian geophysicists (HAGI) in 
Jakarta, Tue (Dec.16) said that the worry on environmental destruction 
caused by the mining activities should not be exaggerated because only 2% 
of the mining concession areas overlap with the areas of protected forests 
in Indonesia.  �The DPR should be cooperative with those 13 mining 
operators,� he said. 

Environmental destruction in Indonesia was actually not caused by mining 
activities. Environmental destruction in the country factually occurred in 
forest concession areas due to lacking efforts of reclamation and re-
forestation. It is not wise to make a use of environmental issue for 
rejecting the issuance of mining permits for those operators.  

The recent joint meeting between the coordinating minister of economy, 
forestry minister, minister of energy and mineral resources, state minister 
of environment; and the national parliament (DPR) of Indonesia, seems to be 
unsuccessful and the meeting has so far produced no follows up. At the 
meeting it was proposed that a credible institution with expertise and 
scientific capability like the Indonesian Institute of Science (LIPI) was 
involved in assessment and recommendation for the approval of the mining 
operations. 

It is worrisome that the prolong controversy over the permits for those 
mining operators would worsen the investment climate in Indonesia. Minister 
Kuntjoro-Jakti has asked the Indonesian mining association to explain to 
the DPR and local governments (Pemda) in regions about the facts such as 
the good and bad things of mining operations and impacts to environment. 
Non-governmental groups (NGOs) of environment that have unilaterally 
rejected the approval of those 13 mining operations should also be given 
scientific explanation. 

In the next five years Indonesia needs additional investment of US$170 
billion to develop mining infrastructures throughout the country, 
particularly in Eastern Indonesia. But over the past years there has yet to 
be new investments in mining sector, thus then there will unlikely be 
development in mining infrastructures in the country.  

One of solutions to reach the target of investment of US$170 billion is to 
again, allow the resumption of mining operations that have so far been 
hindered by forestry law no.41/1999. Mining companies that have signed 
contracts should be allowed to go ahead with their activities.   

Indonesia indeed needs investment in mining sector. The fruit of mining 
operations can be enjoyed in the next 10-20 years. It is closely related to 
prediction that China will become an industrial giant in the next 25 years. 
China will need raw materials in bulk. The country has so far imported raw 
materials from Australia. Indonesai was left behind Australia in 
negotiating with China to supply the raw materials. 

The minister further said, if mining investment is not realized soon, the 
sector will be left behind for 20 years. If Indonesia cannot keep up with 
the growth of market, the bulky demand of raw materials in China will 
gradually decrease and Indonesia will miss a very good opportunity of 
market for its mining commodities.   

The currently existing investment in Indonesian mining sector is 
insignificant because new investors have hardly come to the country. It is 
worrisome that in the year 2007 Indonesia will face a big problem in mining 
sector due to minimal activities of exploration. The low investment has so 
far been hindered by unfavorable legislation; it is very hard for new 
investors to obtain permits in the country�s mining sector.  

Still in the context of overlapping areas between mining and forestry 
sectors, the minister said that law no.41/1999 on forestry should be 
complied with. But he continued to call for approval of the projects that 
had actually been agreed and signed prior to the issuance of the forestry 
law. �We request that the DPR approve the resumption of those 13 mining 
operations,� he emphasized. 

According to him, in years to come whatever the solution to the law should 
be of the exclusive concern of the mining stakeholders in the country. If 
the stakeholders consider that the law has to be revised or totally 
replaced, they can do so and propose a revision or new bill to the new 
parliament following the general election in year 2004. 

That was stated by coordinating minister of economy DorojatunKunjtoro-
Tjakti when opened the IAI-HAGI Joint Convention of Jakarta 2003. 

IAGI-HAGI held a JCJ 2003
The association of Indonesian geologists (IAGI) together with the 
Indonesian association of geophysicists (HAGI) holds an annual scientific 
meeting called The 2003 Joint Convention of Jakarta (JCJ) with theme 
titled �From the Earth sciences to prosperity, sustainability and integrity 
of Indonesia�.

The 32nd annual meeting of the IAGI in coincidence with the 28th annual 
meeting of the HAGI  was jointly held on Dec.15-17 in Jakarta. The event  
attended by 800 participants. 

The 2003 JCJ consists of various activities previous to and subsequent to 
the convention such as annual scientific meetings, exhibition, discussion 
of panelists, and courses on geology, geophysics and fieldtrip. 

Discussion of panelists is held on Dec. 16 with speakers i.e. state 
minister of environment Nabiel Makarim MPA MSM, MT Zen, Hasyim Djalal, and 
HL. Ong Dsc and the moderator is director general of Geology of Mineral 
resources DR Wimpy S. Cecep. 

The convention focuses on the insight over mineral and natural riches of 
Indonesia. The implication is of the aspect of the welfare of local people 
that have so far been insignificantly improved. Environmental issues should 
also be focused while managing the natural resources of the country.  

Euphoria of regional autonomy will very likely become a threat to the 
unitary state of Indonesia since most  regions all over the country tend to 
claim that natural riches in the regions should be exclusively belong to 
them. Such claim will of course become the root of various conflicts 
between the central and regional governments in the country.  

This is why the Indonesian geologists and geophysicists have eagerness to 
pay attention to the development of the mineral and natural riches all over 
the country by giving their significant contributions, inputs, and 
solutions on how to optimally manage resources for the sake of both the 
central and regional governments.  

The JCJ is a good forum of brainstorming for those experts and 
practitioners, at which they can share ideas, opinions, technologic and 
technical experiences in geology, exploitation and exploration of natural 
resources, and mitigation of potential natural disasters. 

The event is expected to generate concepts and ideas in geology including 
techniques, management, and policies that can be used by the government in 
conducting sustainable development of mineral and natural resources all 
over the country.*



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