Politics can be a deterrentI have been catching up on post's and reading about indonesia this past week. I cannot say I am satisfied with my thoughts on the subject. From what I can see there is one main deterrent for mining in Indonesia and that is politics. I do not know if you know that back in May this year, Parliament NTB urged the Governor to make a moratorium or suspension of IUP mining licenses in NTB. Indotan is mentioned in the article. Because the link is not in English this is the google version. Link at the bottom to the article.
Recommend the Board of Governors Moratorium Publishing Recommendations IUP in NTB
updated: Monday, 07/05/2012
Mataram (Sound NTB)
Parliament urged NTB NTB Governor, Dr, TGH.M.Zainul Majdi, to make the decree a moratorium or suspension of approval or issuance of recommendations Mining Business License (IUP) at NTB. It is embodied in the views and recommendations of the Commission III (Mining) NTB Parliament against Accountability Reports (accountability report) NTB governor in 2011.
'' Commission III asked the governor to immediately conduct a comprehensive evaluation of the various recommendations that have been granted and IUP. Furthermore NTB Governor to issue a moratorium on the issuance of letter of recommendation mining license throughout the province,'' said Secretary of Commission III, Nurdin Ranggabarani, SH, MH plenary session in view of the commissions of the NTB Governor accountability report 2011, Friday (4/5) last night .
Nurdin confirms today's time, the provincial government in the leadership of Munir Dr.TGH.M.Zainul Majdi-Ir.H.Badrul together with the Parliament NTB total reflection, evaluating the benefits and harm of many IUP already published. Reflection is whether to choose an environmentally friendly tourism sector or choose a full mining problems and turmoil in society. Provincial government was asked to look at a variety of issues ranging from mining occurring problems that arise in Senggigi, West Lombok, the problem of tailings and divestment of PT NNT to issue mining in Bima regency, the end of December 2011.
Described, as much as 44 percent of the land area NTB that reached 2.5 million hectares or more or about 891 thousand acres have been zoned for mining. Until the year 2011, the government has published 157 IUP IUP consists of 74 exploration, 76 IUP production, 4 SIPD and a special IUP. In addition, the call Nurdin to date, the Governor has issued 10 pieces lend use permits on forest and land use permits borrowing fruit kepada10 mining companies.
Two mining companies are granted permission lend use forest areas, namely PT Antam Tbk located in Sumbawa regency and PT Nusantara Mineral Resources located in Bima district. While 7 mining companies borrow and use permit granted land mines each PT Inti Power covering 9734 hectares in the district Alas Alas and West Sumbawa regency, PT Energy Resources area of ??12,380 hectares in the district of Sumbawa.
Furthermore, PT Nusantara Mineral Resources area of ??24,000 hectares more in Lambu, and Langgudu Sape, Bima, PT Aneka Pacific area of ??4000 hectares in the District Labangka, Sumbawa regency. PT Antam Tbk an area of ??1,900 hectares more in Sumbawa Regency and West Lombok PT Indotan rise of 5,000 acres in West Lombok Senggigi. While a single mining company rejected the plea recommendation Copyright Megah PT 500 hectares more in Dompu.
"Commission III to the governor hopes to be more selective and careful in giving advice on land use permits and permission to borrow lend use forest areas for mining. It's pretty much accumulation caused by mining activities. Suffice PT NNT at KSB and PT SMN in Bima regency and this should be a lesson governments in their policy, "imbaunya.
Meanwhile, hundreds of IUP was published in NTB, 68 pieces IUP for metal minerals. Of the 68 pieces IUP, the IUP new 4 pieces that have been declared clear and clean or qualified by the central government. While the sides are not qualified or do not otherwise clear and clean. Because there overlapping mining areas with other companies. Besides, not discharge a letter of recommendation from the ministry kehiutanan the forest area lend use permits.
'' Against the two mining companies are granted permission lend use forest areas to be immediately removed to avoid recurrence considering the case as in the Milky some time ago,'' he said
LINK: https://www.suarantb.com/2012/05/07/wilayah/mataram/detil2.html
In another article it states that the Governor of West Nusa Tengara province is ending his tenure in 2013. So that will add more pressure to the mix. You can read that article below. It looks like many do not want the government to invest another 7% into Newmont. They have many other ideas that I do not like. The students are protesting. This article is dated August 2012.
Future of Local Autonomy Vs Seven Percent Shares NNT, Fighting Between JUN JIN Dan
By Rusdianto
Wednesday, August 15, 2012 11:47
LINK: https://www.tambangnews.com/serba-serbi/opini/2612.html
Lastly this article is not very encouraging. Even though it isn't in the area that SA is working in it sort of makes you think where this is all heading. I have my own thoughts on the subject and I am sure you do as well. This article is dated July 25, 2012. I am still waiting for clarification in regards to the Forest permits. Onward and upward. Cheers.
Indonesia's risks and rewards
Richard Hemming
Investors are dumping companies associated with Indonesia in the wake of Intrepid Mines' minor joint venture partner kicking it off its gold and silver mining project in East Java.
Indo Multi Niaga (IMN)'s actions last weekend mean that Intrepid's 80 per cent ownership of the site is effectively under threat, prompting questions about the legal certainty of foreign ownership in Indonesia.
The junior miner's (ASX code IAU) shares have more than halved this week and at 23 cents are a fraction of their $1.87 12-month high.
It is a sad situation for a country that appears to hold so much promise for investors.
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In 2009 companies flooded into the resource rich nation after it initiated new mining laws aimed at simplifying the foreign investment process.
But since then, it's done everything to make life as difficult as possible for those investors: repatriating resources, imposing export taxes as well as foreign ownership limits. We are talking about miners big and small here.
In the past week, the Indonesian Government is effectively forcing Freeport McMoran Copper & Gold (market cap $US31 billion) to reduce its stake to 49 per cent in its Indonesian unit through an initial public offering on the local market, and to pay higher royalties on its giant Grasberg mine.
But these big companies have diversified operations - its shares are only off 3.4 per cent after the announcement.
Biggest risks
It is the small caps that have staked their future on mineral wealth in Indonesia that stand to lose the most.
LINK: https://www.smh.com.au/business/indonesias-risks-and-rewards-20120725-22ozr.html