September 2001, Clive Aspinall, M.Sc., P.Eng / International Institute for Environment and Development (IIED), World Business Council for Sustainable Development (WBCSD)
Ancient Sanskrit documents translated by the Dutch, reportedly mention Sumatra rich in gold. Small-scale gold mining is deemed to have begun before the Dutch East Indies Company at the beginning of the 17th Century. The evidence is reported from alluvial workings, tunnels, diggings, shafts, aqueducts and sluices.
Small-scale mining today is completely unregulated, is hurting the environment as well as polluting Indonesia’s rivers with mercury, and for the most part is “tax exempt.” This is because 90% of small-scale mining in Indonesia is regarded by the authorities as “illegal.” In this year 2001, Indonesia is now in transition to a democracy, and by all indications, the country is moving in the right direction. The Indonesian small-scale miners could be a tremendous resource to Indonesia if only they could be organized and managed by the government, or agents of the government. The problem is the government not only lacks funds, but also expertise. The government also has many other pressing matters to correct.
What is definitely needed as more proactive in-put by the regulated mining companies operating in Indonesia, under a program of tax incentives. Mining companies, the Indonesian Mining Association and government, centrally and regionally, must now work Small-Scale Mining in Indonesia closely together to solve the challenges of small-scale mining in Indonesia, and tap into this very valuable natural resource of minerals small-scale miners. The following report tries to highlight some of the major challenges.
