Indonesia plans to limit the area that metal and coal miners can explore to prevent the formation of monopolies, a mining legislator has announced.
The country plans to limit exploration and exploitation areas for metal mining to 100,000 ha and 25,000 ha per firm respectively, chairman of a parliamentary commission in charge of energy and mining issues Airlangga Hartarto told Reuters.
The law would also limit exploration and exploitation areas for coal mining to 50,000 ha and 15,000 ha per firm respectively.
"This is aimed at preventing mining firms from controlling large areas. The current system has allowed firms to have mining areas above 100,000 ha," Hartarto says.
Indonesia's mining industry has already suffered from underinvestment from foreign companies due to legal and financial restrictions.
A draft bill limiting the exploration area is expected to be passed by August, according to Hartarto.
By staff writer
