Shortly after the promulgation of the Foreign Capital• Investment Law in 1967, the Government pursued an unconventional policy to speed up mineral exploration. International tenders were issued to develop certain areas. with tin and nickel potential, and shortly thereafter 53 blocks of mineralized areas were opened for large scale "general mineral exploration". As a result of this policy, 17 private foreign companies were actively engaged in mineral exploration in various parts of the archipelago during the period from 1967 to 1973 on the basis of "contract of work" with the Government, and in 1975 Shell became the first company to sign a "production sharing agreement" for the exploration and development of the coal resources in South Sumatra.

A real exploration boom took place in the period from 1970 to 1974. Various exploration techniques, including modern ones like SLAR and satellite imagery, were used. Helicopters became indispensable for carrying out fieldwork in hitherto inaccessible areas, like the central mountain range of lrian Jaya or the deeper parts of the Bukit Barisan in Sumatra.In general, the total time allowed for mineral investigation as stipulated in the various contracts is : a maximum of two years for prospecting plus a maximum of five years for exploration, and thereafter one year for feasibility studies Exploration activities by private foreign companies during the decade 1967 - 1976 covered a total area of 525,000 square kilometres, or more than 25% of the total land area of Indonesia. These activities included :

exploration for copper in lrian Jaya (100 sq km), exploration for lateritic nickel in Southeastern Sulawesi, Northern Maluku, Waigeo and surrounding islands, and in some parts of lrian Jaya (107,600 sq km),
exploration for tin in Bangka, Belitung and the seas surrounding the tin islands {38,200 sq km), exploration for bauxite in various parts of Sumatra, Riau islands, Bangka, Kalimantan, Java, Sumba, and Muna Island {125,000 sq km), exploration for coal in Southern Sumatra (71,000 sq km),.exploration for industrial minerals (diamond, granite) in South Kalimantan and Karimun Island (1,400 sq km), and general mineral exploration in various parts of Sumatra, Java, Sulawesi and lrian Jaya (182,100 sq km).

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