The law is effective as from January this year, but many companies could not afford building processing plant.Kendari, SE Sulawesi (ANTARA News) - The implementation of the Law No. 4 of 2009 on coal and minerals has forced at least 19 mining companies in Southeast Sulawesi to stop operation.
The law requires mining companies to process their mineral ores before being exported.
The law necessitates mining companies to have plant, either their own or plant of other companies to process their ores.
The law is effective as from January this year, but many companies could not afford building processing plant.
Building a plant is not feasible even for many big mining companies, observers have said.
Mining giants like Freeport Indonesia, Newmont and PT Antam have not fully complied with the law regulation, they cited.
The most serious impact of the stoppage of operation of the companies is loss of jobs for many workers, adding to the countrys already high unemployment rate.
Head of the industrial relations and labor supervision of the regional manpower office Makner Sinaga said the companies should from the beginning have known the impact of the law when it was passed in 2009.
"Wave of dismissals of workers since the law was effective has continued in Southeast Sulawesi. The number of jobs cut grew from day to day," Sinaga said here on Wednesday.
Data from the regional manpower office showed that 1,542 workers had been laid off by 19 mining companies in the province.
"The companies have been given time from 2009 to prepare for the impact and to build smelters to enable them to continue operation," Sinaga said.
They could have joined in building the smelter, he added.
He said most of the 19 companies already fulfilled their obligations in severance pay to their workers.
He said he hoped other companies would not delay to do the same to their workers.(*)
Editor: Heru Purwanto
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