In the first half of this century a mining industry was developed in Indonesia under Dutch colonial rule. World War II and the subsequent struggle for independence resulted in the destruction of most of the infras- tructure and much of the data. After independence, restrictions on for- eign investment and internal turmoil prevented re-establishment of a viable mining industry until the formation of the present Government after 1965 and the enactment of sound laws in 1967 to encourage foreign investment. Rebirth of the mining industry was followed initially by slow growth, but in the 1980's, spurred by the worldwide interest in gold, Indonesia has become the focus of an intense exploration boom for gold and other precious metals. 103 Contracts of Work for gold have been awarded since 1985 with Australian companies being the most predominant. Since 1985 three new gold operations have been commissioned and another two are nearing completion. Several more are undergoing feasi- bility studies. There is reason to predict that Indonesian gold produc- tion will grow to place the country in the ranks of significant producers during the 1990's.