Government urged to apply downstream mining policy consistently

"The downstream policy is the right step. Any harm that it may cause will only be temporary. However, later, it will provide multiple benefits," Chairman of the Indonesia Mining Association Expert, Achmad Ardianto, said.

Jakarta (ANTARA News) - The Indonesia Mining Association Expert (Perhapi) has called on the government to be consistent in implementing its policy on mineral and coal mining downstream products.

The association`s chairman, Achmad Ardianto, said here on Monday that mineral and coal mining should "offer maximum benefits to Indonesia".

"The downstream policy is the right step. Any harm that it may cause will only be temporary. However, later, it will provide multiple benefits," he said.

However, the implementation of the downstream policy must be consistent, according to Achmad, who is also the Director of Human Resources of PT Aneka Tambang, a state-owned mining company.

"First, it should be an extension of the previous downstream policy`s time limit and be in line with Law No.4 /2009 on the establishment of mineral and coal mining plants in 2014," he stated.

"This policy takes time. It seems to need some extended time in 2014," Achmad said.

He said the government must consider the preparedness of the mining sector in building the processing plant (smelter), which takes a long time and involves great expenses.

Besides, Achmad stated that the government should also "consider providing incentives for smelter development to be more economical".

Meanwhile, the Association`s Working Group Mining Policy chairman Budi Santoso noted that the smelter might take three years to be completed.

"We might run out of time even if construction starts this year," he said.

Currently, mineral companies are developing 185 smelters for the government.

The government has set up a proposal evaluation team that knows all about potential and existing mineral reserves.

The team includes several academics from the University of Indonesia and the Bandung Institute of Technology.

The government will encourage the investor consortium to build a smelter. (*)

Editor: Heru Purwanto
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