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Foreign investment

Mining news in brief

Down to Earth No. 76-77 May 2008

 

New regulation means cheap forests for mining

A new government regulation on non-tax income from forest areas has caused outrage among NGOs by setting low prices for the use of forests by mining companies and other non-forestry sector users.

The regulation - PP 2/2008 - sets the rate for mining in protection forests from Rp 2,250,000 - Rp3 million (around US$240-320) per hectare per year. In production forests, the rate is Rp 1.8 million - 2.4 million (around US$192 - 255) per year.

Oil palm plantations? Carbon credits? Papua's forests targeted

Down to Earth No.75, November 2007


Large areas of Papua's rich and diverse forests are being targeted by Indonesian and overseas investors for conversion into oil palm plantations. At the same time, discussions are in progress to reserve large areas of Papua's forest to generate carbon credits for trade on international markets.

Aceh's golden crop?

Down to Earth No.75, November 2007


Aceh's new government is promoting the expansion of oil palm plantations in the province as 'in the interests of the people', but it is by no means clear that local communities will be the main beneficiaries.


A report by the independent research organisation Eye on Aceh examines the growth of oil palm plantations in Aceh and the social, environmental and economic costs of this agribusiness. The Golden Crop?

CSR à la Jakarta

Down to Earth No. 74, August 2007

 

The final draft of a revised 'corporates' bill was given the nod by Indonesia's House of Representatives (DPR) on 20 July, 2007. This marked the passing of the bill, which replaces the old Limited Liability Company Law, (No.1,1995). The new Limited Liability Company Law, alongside the revised Investment Law (see DTE 73), is designed to update company legislation and is part of a bundle of regulations and statutes being enacted to make the country more attractive to new investment.

Strikes and book launch keep Freeport-Rio Tinto in the news

Down to Earth No. 73, May 2007

The giant copper and gold mine operated in West Papua by US-based mining company Freeport McMoran with substantial investment from the British multinational Rio Tinto has been under scrutiny once again.


The Freeport-Rio Tinto mine has been the subject of protests at local and national level in recent months. At the local level, thousands of Papuan workers at the mine went on strike for four days. Facing hundreds of military and police, they successfully demonstrated against discriminatory employment practices.

Newmont case verdict - blow for communities and environment

Down to Earth No. 73, May 2007


The decision of a North Sulawesi court to find the US-based mining company, Newmont, not guilty of polluting the environment is a huge disappointment for NGOs and communities who have been struggling for years to hold this multinational gold mining company to account.


The Manado Court in North Sulawesi - the province where the now-closed Ratatotok gold mine was located - came up with its verdict on April 24th.

New investment law is not pro-poor

Down to Earth No. 73, May 2007


The Indonesian parliament passed a new investment law in March, despite strong civil society opposition and despite much concern over its implications.