Reuters reported that Mr Susilo Bambang Yudhoyono Indonesia President has ordered a review of all mining permits issued by local governments in an attempt to improve transparency and accountability in the sector.

The president set a December 2012 deadline for the energy ministry to complete the task working with the domestic affairs ministry, the justice and human rights ministry and all local governments.

According to a statement by the cabinet secretary office "President has ordered improved monitoring of operations in the mining sector so that it is accountable."

The order was signed December 19 but only made public on Friday.

Indonesia contains some of the world's richest mineral deposits and the fast-growing mining sector contributes 11.2% to the country gross domestic product. But ownership of natural resources is an increasingly sensitive political issue, especially foreign ownership.

Jakarta based lawyer Mr Bill Sullivan an expert on mining regulations in Indonesia said "The government clearly regards foreign investors as having excessive influence, interests and rights in the local mining sector.,"

The Indonesian energy and minerals ministry has been drafting a rule that would by 2014 require miners to carry out minimum processing on minerals before export.

(Sourced from Reuters)