In a bid to boost investment, Indonesia will issue a fresh set of rules to reduce restrictions on mining in forests.

"We will issue new rules on mining in the forest. We are aware that foreign investors are confused about overlapping regulation but we will solve the problem,' said secretary general of mines and energy ministry Djoko Darmono.

Currently, Indonesia bans open pit mining in several forest areas. Foreign investors have found these regulations "too rigid' because they are forced to put on hold development plans for mining in the country.

Darmono said the issue of mining and forestry had been raised during cabinet meetings in the past and the government would work seriously to resolve the issue, especially to keep foreign mining investors in Indonesia.