The companies obtained contracts before parliament passed a forestry law in 1999 to restrict mining in the protected areas. After the law came into effect, the companies -- mostly joint ventures -- had to suspend their operations.

"This will give certainty to a mining problem which has been left unresolved for quite a long time," Forestry Ministry Muhammad Prakosa told reporters at parliament.

He did not confirm the total number of companies affected by the 1999 law but said 13 would be allowed to restart operations.

"We have yet to discuss about the others," he said.

The 13 include Freeport Indonesia, the local unit of American-based Freeport McMoRan; Canadian-run International Nickel Indonesia (INCO) in Sulawesi; and Australia's Newcrest Mining unit Nusa Halmahera Minerals in North Maluku.

Reports have suggested about 150 mining firms have suspended operations since the 1999 forestry law came into effect.

"The law has some weaknesses that will hinder investment. So, we accept the regulation (resolution) with a view to its correcting the law and allowing companies to resume their operations," Sutrisno, spokesman for President Megawati Sukarnoputri's Indonesian Democratic Party of Struggle, told the plenary session.

Iskandar, spokesman for the Golkar party which won Indonesia's April general elections, said the resolution would stop foreign investors from pursuing legal action through international arbitration. Such action would ultimately increase Indonesia's foreign debt burden, he said.

"We realize that, given that most companies (affected by the law) are foreign companies," he said.

A 2002 report by the World Resources Institute, Global Forest Watch and Forest Watch Indonesia Reports said Indonesia was losing nearly two million hectares (4.94 million acres) of forest annually -- an area half the size of Switzerland.

TERRA.WIRE