US Entrepreneurs Query Law on Mining

VIVAnews - Several US Entrepreneurs met with Indonesian Vice President Jusuf Kalla in Den Haag, the Netherlands, on Sunday, Feb. 8, and questioned the new Law on Mining.

"They asked whether the technical guidance applies the Presidential or Ministerial Decree," Head of Indonesian Chamber of Commerce to US Committee, Sofjan Wanandi, told VIVAnews in Jakarta on Monday, Feb 9.

Wanandi said that the delayed legalization of the Law bemused the US entrepreneurs. "The Vice President promised that he would implement the technical guidance as soon as possible after all decisions on the implementation are prepared," he said.

Meanwhile, Wanandi said that ExxonMobil oil refinery company has stated its intention to carry out more off-shore exploration in Banyu Urip, Cepu, Central Java. "They want to build off-shore oil refineries," said Wanandi.

In addition, he said, ExxonMobil demanded that the Indonesian government expedites permit processes in order to boost production to between 20 and 30 thousand barrels per day compared to the previous 10 thousand barrels per day.

According to Wanandi, Kalla asked the US entrepreneurs not to delay their investment plans in Indonesia. "The Vice President said that since the production costs are low, experts, energy and construction would be cheap as well," he said.

Giving oil exploration as an example, he said, benefits will become apparent in the next three or four years after the crisis passes. "Caterpillar will also go with its investment plan in Indonesia," said Wanandi.

Meanwhile, said Wanandi, the US entrepreneurs evaluated that the relationship between Indonesian and the United States during the Obama administration will be better. "In fact, they have asked their President [Obama] to visit Indonesia to improve the relationship between the two countries aiming at more promising investment," he said.

"As for top companies such as Exxon, it will continue investing this year. However, the crisis-affected companies may delay their investment until next year [2009]," said Wanandi.

Translated by: Bonardo Maulana Wahono