Another Policy Change

The government is preparing a new policy on the mining sector. Is this a compromise to minimize investor disappointment?

January 21, 2003

It is fair to say that the Megawati administration has proven itself expert at policy changes. Having promised to reverse the decision to hike telephone, electricity and fuel prices, the government is now preparing a new governing policy for the mining sector, designed to settle a dispute between the mining and forestry sectors.

The row erupted over Article 38 of Law No. 41/1999, one of the articles of which stipulates that open mining is pr

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