Jakarta – Investment commitments by 13 mining firms allowed to operate in Indonesia's protected forests reached US$17 billion last year and contributed $400 million to state coffers, an official said on Friday.
However, Director General of Geology and Mineral Resources Simon Sembiring said until yesterday, the miners "did not have the legal go-ahead to continue their projects".
The House of Representatives endorsed yesterday acontroversial government regulation that allows the mining firms to resume operations in protected forests. Critics say the move reflects the government's lack of committment to conservation.
Minister of Forestry M. Prakosa said he was happy with the House's decision because it had finally put an end to protracted disputes between the government and several mining firms whose operations had to be halted following the enactment of Law No. 41/1999 on forestry.
"This decision is in line with government's plan to ensure legal certainty in the mining sector, which has been in limbo for years ... We are happy with the result," said Prakosa after a plenary session on Thursday.
The government had drafted the regulation in March to allow the mining firms in question to resume their operations in protected forests. The regulation was introduced to the House one month before the legislative elections.
Simon said besides contributing to government revenue, themining operations would speed up the development of infrastructure in the regions and create jobs.
Conservation groups have said the regulation would put the country's already depleted forests at an even greater risk of destruction.
Simon said the groups' concerns were reasonable. "The protests are positive, they remind us we have to be careful to not destroy our environment," he said.
Thirteen firms that mine in Indonesia are PT Freeport Indonesia, PT Karimun Granite, PT INCO, PT Indominco Mandiri, PT Aneka Tambang (Bahubulu), PT Aneka Tambang (Buli), PT Natarang Mining, PT Nusa Halmahera Mineral and PT Pelsart Tambang Kencana.