JAKARTA - Member of Commission VII DPR RI Mulyanto assessed that the resignation of several European companies in the mining area management project in Indonesia indicates that there are serious problems related to mining policies today.
"The biggest chemical company from Germany, Badische Anilin und Soda Fabric (BASF) and French mining and metallurgical company Eramet, from the Sonic Bay project in North Maluku confirmed the matter," said Mulyanto, quoted Tuesday, July 2.
Mulyanto said that the government is considered unable to provide the convenience and security of the investment it wants to build, so it is natural that multinational companies that have experience reviewing decisions for investment in Indonesia.
The deputy chairman of the PKS faction of the DPR RI mentioned several indicators of damage to the investment climate, including the high index of corruption in Indonesia, the decline in public trust in law enforcement agencies, political instability and the complicated coordination of mining licensing between the Ministry of Energy and Mineral Resources and the Ministry of Investment.
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According to Mulyanto, this situation can affect investor confidence to invest in Indonesia.
"Although it may be mainly caused by investment economic factors, political factors greatly influence perceptions of legal certainty, which leads to an investment climate in Indonesia," continued Mulyanto.
According to him, investors study this condition which is part of investment risk mitigation.
"BASF and Eramet are two investors from Europe. We need to see how investors from other countries respond, especially from China," concluded Mulyanto.
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