The Minister of Energy and Mineral Resources assures that the enactment of the Presidential Instruction No. 10 Year 2011 on Suspension of New Permit and Management Improvements for Primary Forests and Peatland Areas will not case a drop in the country’s coal production.
Thamrin Sihite, Director General of Mineral and Coal at the Ministry of Energy and Mineral Resources, said that the presidential decree will only limit the total additional mineral and coal reserves. Production will not be affected as several mining companies will advance from exploration to the exploitation phase.
The Indonesia Coal Association (APBI) says that the presidential decree will disrupt the mining sector’s investment climate. Supriatna Suhala, Executive Director of APBI, says that the development of numerous coal mines will be postponed due to the regulation.
The decree, which authorizes a forest moratorium, will apply for 62 million hectare primary forests and peatland areas and two million hectares of other land uses.
“Numerous projects will be postponed. Many coal producers will be affected, but we don’t know the number yet,” Supriatna said.
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