Foreword
Author | Peter Albert |
Profession | CEO of G-Resources |
Pages | 11-12 |
Foreword
In January 2009 the Indonesian government introduced anew mining law
for the development of mines in Indonesia. This new law replaces the 1967
law that was designed to attract large international mining companies to
develop large world-scale mines in one of the world’s most geologically
prospective environments while smaller and medium-scale mines were the
exclusive perview of Indonesian companies. The 2009 mining law does not
deal comprehensively with all aspects of the requirements for exploring,
developing, and building new mines; this was deliberately left to Ministerial
Regulations to be handed down at later dates. In addition, the new mining law
provided a number of inconsistencies and contradictorystatements that caused
confusion among existingand potential new mining entrants; these anomalies
have, to some extent, been dealt with by the ensuing mining regulations. The
undertaking of exploration, development, and miningis further complicated by
the deregulation of government that has taken place over the past fifteen years
with approvalsfor different aspects of a developmentbeing required at multiple
levels of government, thatis, central, provincial, and regency.
Sullivan’s work attempts to unravel the multicomplex rules, regulations,
and reporting requirements proposed by the new mining law, and while it is
still a very dynamic situation, Sullivan’s work is extremely comprehensive in
its understanding and analysis. The work is factual, with little opinion or
commentary, which is appropriate for such a work. It is essential reading, not
only for potential new entrants to Indonesian mining but also to those
already operating in Indonesia seeking to understand the new landscape and
the complexity of all the rules and regulations that can be somewhat con-
fusing. Sullivan’s work, while written from a legal perspective, is easy to read,
thorough in its analysis, and provides clarity and understanding to the reader.
Indonesia is geologically one of the most prospective environments on
the planet. The Indonesian government recognizes this and recognizes the
tremendous potential that sensible and sustainable mining can bring to the
economy, the local communities, and the long-term strategic goals of the
country. The new mining law, while not perfect, is a significant step forward
in the long-term development of this strategic industry. Sullivan’s work will
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