Sunday, March 14, 2010

The mining sector represents an important economic sector.

Since the beginning of the New Order has stimulated foreign investment went to the exploitation of this mining sector. Domestic capital is less available. Until now there are only two SOEs in the mining of large, namely ANTAM and coal companies. Private companies in the country's famous big now only one, namely KPC (Pima Kalimantan Coal). Large foreign companies more. The biggest is the Freeport copper and gold mine in Papua, Inco nickel mine in Sulawesi, Newmont Mining (gold) which has several large projects as well.

Foreign investment per project up to a hundred million dollars. In cumulative project Freeport each had to plant one billion dollars. Potential mining in Indonesia has a high ranking in the world. Therefore, international investment will still be attracted to him, provided an exciting environment for investment. During the New Order so many foreign companies thus entered Indonesia, and now has picked up dozens of licenses, although the amount already in operation is still limited. However, after 1997 practically no new investors coming.

Last week there was little news in the newspapers from the United States, of Freeport McMoRan Copper and Gold Inc.., The largest shareholder of PT Freeport, to share extra dividend 50 dollarcent already three times this year. This is a sign of PT Freeport's huge profits. Thanks to nickel prices are high then the PT Inco has also acquired a tidy profit.

On the other hand, in recent domestic all-nationalist sentiments that arose who questioned whether the exploitation of rich mines in Indonesia was the nation truly profitable? Amien Rais is one of a vocal leader. But in the House there are also voices that match. Moreover, today many NGOs who became a vocal critic of the development in the mining sector.

Part of the reason they make sense. Ekpsloatasi mining is often not the soothing view of the eye. Tailingsnya disposal often creates a pathetic picture for damaging the environment. Those who had flown to the Freeport mine in Papua, can be witnessed from the aircraft when it would land in Timika. On the other hand, neither the company nor the government is watching already entered into the verification and the conclusion is that no rules are violated. NGOs are not so sure, even have a prejudice that the government people, so getolnya stimulate foreign investment, and there might be feeling inferior to the foreign element, is too weak attitude. NGOs also pointed out that the residents around the project, or in the project area, remain poor. Just look at the natives of Papua, Riau, Aceh and East Kalimantan. This is the first community development issues, in the first generation Contract of Work, not specifically mentioned as a corporate responsibility.

COW itself has several times revised and improved conditions for Indonesian parties. COW prevailing now the seventh generation. If a foreign mining families who ask for extension of time will be subject to a new generation of families. So there is progress.

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