HISTORY NEVER REPEATS? INDONESIA'S FOREST ISSUES CONTINUE

摘要

THE Indonesian mining industry went into a spin in 1999 with the enactment of a new Forestry Law. The new law prohibited among other things, open pit mining in areas designated as protected forests. The most vocal opposition came from holders of prestigious Contracts of Work (COWs) - being an agreement with the Government of Indonesia (GOI) granting exclusive rights to conduct mining activities in a specified concession area - who had made significant investments in mining projects. There were veiled threats that the prohibition may amount to breach of COWs by the GOI. After much lobbying, the Ministry of Forestry issued a regulation in 2004, which exempted 14 concessions from the prohibition. At the time, there was much grumbling from smaller mining industry players, particularly holders of KPs - which as opposed to a COW 'agreement', are mere mining licences - of unfair treatment. Ultimately, the exemption regulation withstood a constitutional challenge.