Mining - Missing the Target

The much anticipated Bill on Mining scheduled for a March 2007 passage through the House of Representatives (DPR / Dewan Perwakilan Rakyat) is not going to happen. The Bill although considered a priority is floundering in the Committee process with less than half of the Articles and Chapters having been debated. The revised enactment date has been pushed back to early 2008. The delay in the passage of this Bill highlights the slow nature of the DPR in the performance of its primary task - passing legislation into law.

Nevertheless, the delay of this particular Bill has significant repercussions as it prolongs the use of the current Mining Law which was enacted in 1967 (Law No. 11 of 1967). Much has changed in the intervening years between 1967 and 2007 and as such most mining industry players consider the 1967 law to be antiquated and no longer relevant to the current situation of a much more robust and dynamic 2007 mining sector.