Tb. Arie Rukmantara, Jakarta – A band of former 1980s student activists have joined the chorus of protests against the mining industry here, demanding the government review all work contracts with mining companies.
The ProDemocracy network, a group consisting of former student activists, many of whom were arrested during the Soeharto regime for demanding land reform, urged the government to reform the country's mining industry because they said it had failed to improve the welfare of Indonesians.
The group urged the government to review all working contracts with mining companies to seek better revenue splits in production contracts. It should also clamp down on officials who issued licenses for firms that polluted the environment, they said.
"If the government fails to re-acquire the country's natural assets from these companies, people's living standards will never increase," ProDemocracy secretary general Ferry J. Juliantono said to a gathering of about 250 political activists.
Indonesian Forum for the Environment head Chalid Muhammad said the work contracts of mining and energy companies should be reviewed because 85 percent of the companies working here were foreign owned.
"If we don't review the contracts, the nation could go bankrupt because its natural treasures are being taken away in exchange for minimal compensation," he said.
Energy and Mineral Resources Ministry director general Simon Sembiring said those who opposed mining were not looking at the wider contribution of the sector.
Claims miners only contributed between Rp 4 trillion and Rp 7 trillion (US$435-761 million) in annual revenues to the government were gross understatements, he said. "What (activists) often cite is non-tax revenue, but the industry has contributed much more in tax payments," he told The Jakarta Post.
Last year, the industry had contributed more than Rp 17 trillion to government coffers – Rp 12.9 trillion in tax payments and Rp 4.7 trillion in non-tax payments, he said. "This year, we are targeting about Rp 17.9 trillion in state revenue from the sector," he said. Mining firms also employed about 90,000 workers.
Simon said the working contracts of about 40 mineral and coal mining firms could be reviewed only if the government and the companies agreed to do so. The government already carried out routine reviews of revenue sharing agreements in the sector because prices fluctuated every year, he said.