Mining investors should follow law: government

Mining investors should follow law:  government

Mining activities in North Maluku Province (Abdul Fatah)

Jakarta (ANTARA) - The Indonesian government has called on mining investors to adhere to the law and maintain a stable investment climate.

According to data from the Corporate Body Administration System of the Directorate General of Law Administration compiled by ANTARA on Thursday, 86,693 companies are engaged in the mining sector as of October 2019.

Earlier, President Joko Widodo had called on relevant ministries or government institutions to simplify bureaucracy under the endeavors to ease investment and attain the goal of Indonesia ranking among the top 40 economies in the Ease of Doing Business (EoDB) index.

Indonesia is currently ranked 73rd among 190 economies in the EoDB index. The ranking stayed unchanged from 73rd in 2018.

According to the latest World Bank annual ratings, EoDB in Indonesia averaged 106.42 from 2008 until 2019, touching an all-time high of 129 in 2008 and a record low of 72 in 2017.

Data from the Investment Coordinating Board (BKPM) indicated that the realized investment in the mining sector is among the top 10 sectors, with realized investment bracing an all-time high of Rp15.1 trillion in the second quarter of 2019, or 7.5 percent of the realized investment in the country.

Meanwhile, the BKPM data indicated that the realization of foreign investment in the mining sector had reached Rp42 trillion spanning 606 projects in 2018. Nearly Rp8.218 trillion of the total investment in the mining sector was spread across 275 projects in East Kalimantan Province.The figure represents almost 20 percent of the total foreign investment in the mining sector.

Law and Human Rights Minister Yasonna Laoly stated at a seminar held in East Kalimantan recently that the mining sector plays a vital role in attracting investment in Indonesia.

Hence, regulations offering security guarantee to investors harboring good intentions must always remain the focus of the Indonesian government, he emphasized.

Laoly also spoke of the government having prepared a series of programs to intensify coordination between the central and regional governments and among ministries, non-ministerial government institutions and other authorized parties.

The coordination is expected to expedite the process of investment licensing and enable investors to hold sound knowledge of the Indonesian legislation.

As such, investors conducting business activities in the country will adhere to the law.

However, if they harbor ill intentions, the government will always stand firm against them as part of the efforts to deter them, he remarked while referring to the international arbitration suits filed by Churchill Mining Plc and Planet Mining Pty Ltd against the Indonesian government at the International Centre for Settlement of Investment Disputes (ICSID).

Related news: Mining sector sees highest investment in East Kalimantan