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Ada Pertanyaan? Hubungi Kami Kartini Laras Makmur, Yanuar Pribadhie
The lengthy dispute between Britain-based mining companies Churchill Mining Plc and the East Kutai Regional Government goes on and appears far from the over. After nearly four years, the dispute is continuing with each party taking a firm stand on their respective positions.
East Kutai Regional Government remains confident after the Indonesian Supreme Court affirmed the revocation of Churchill’s mining license. On the other hand, Churchill continues to challenge East Kutai Regional Government by bringing the dispute against the Government of Indonesia before the International Center for Settlement of Disputes (“ICSID”).
The latest development at ICSID reveals that Churcill recently proposed a reduction in its claim for damages from USD 2 billion to USD 1.05 billion. This proposal has made the Government more confident that it will prevail at ICSID.
“Maybe Churchill is not that confident to win this dispute,” said Isran Noor, the regent of East Kutai, who revoked Churchill’s mining license in 2010, in Jakarta on Tuesday.
Mr. Noor is adamant that the Government will win on the grounds that he never issued the license to Churchill. He further explained that there is a strong indication that Churchill falsified the documents to acquire the relevant license.
Mr. Noor states that the Government will not place itself in a losing position and admit any fault. Therefore, the Government will reject any negotiated settlement proposals like those previously put forward. He believes that Indonesia will win without a need for any negotiation.
“There have been some people propose a settlement. Some of them suggested negotiations and propose an indemnification which we will reject,” says Mr. Noor.
Hotman Paris Hutapea, a well-known Indonesian lawyer, agrees that Indonesia is in a rather strong position, and hence, negotiation is unnecessary. However, he suggests that Indonesia’s team needs to be supported by more international level business lawyers.
“Indonesia must consider strengthening their team with international business lawyers specializing in litigation,” says Mr. Hutapea.
The dispute itself started when Mr. Noor as the East Kutai Regent revoked the mining licenses held by Ridlatama Group subsidiaries in 2010. According to Mr. Noor, he terminated the licenses as they were being misused. Mr. Noor issued the license for Ridlatama Group and not Churcill.
However, Ridlatama sold its shares to Churcill, an action which Mr. Noor deemed as a violation the regulations on foreign direct investment. Under the applicable regulations, foreign parties are not allowed to hold the licenses in question.
Churchill insisted on suing the Government because it owns 75% of the shares in four of Ridlatama’s subsidiaries, PT Ridlatama Mineral, PT Investama Resources, PT Ridlatama Trade Powerindo, and PT Investmine Nusa Persada.
(hot/kc)
Kartini Laras Makmur, Yanuar Pribadhie
The lengthy dispute between Britain-based mining companies Churchill Mining Plc and the East Kutai Regional Government goes on and appears far from the over. After nearly four years, the dispute is continuing with each party taking a firm stand on their respective positions.
East Kutai Regional Government remains confident after the Indonesian Supreme Court affirmed the revocation of Churchill’s mining license. On the other hand, Churchill continues to challenge East Kutai Regional Government by bringing the dispute against the Government of Indonesia before the International Center for Settlement of Disputes (“ICSID”).
The latest development at ICSID reveals that Churcill recently proposed a reduction in its claim for damages from USD 2 billion to USD 1.05 billion. This proposal has made the Government more confident that it will prevail at ICSID.
“Maybe Churchill is not that confident to win this dispute,” said Isran Noor, the regent of East Kutai, who revoked Churchill’s mining license in 2010, in Jakarta on Tuesday.
Mr. Noor is adamant that the Government will win on the grounds that he never issued the license to Churchill. He further explained that there is a strong indication that Churchill falsified the documents to acquire the relevant license.
Mr. Noor states that the Government will not place itself in a losing position and admit any fault. Therefore, the Government will reject any negotiated settlement proposals like those previously put forward. He believes that Indonesia will win without a need for any negotiation.
“There have been some people propose a settlement. Some of them suggested negotiations and propose an indemnification which we will reject,” says Mr. Noor.
Hotman Paris Hutapea, a well-known Indonesian lawyer, agrees that Indonesia is in a rather strong position, and hence, negotiation is unnecessary. However, he suggests that Indonesia’s team needs to be supported by more international level business lawyers.
“Indonesia must consider strengthening their team with international business lawyers specializing in litigation,” says Mr. Hutapea.
The dispute itself started when Mr. Noor as the East Kutai Regent revoked the mining licenses held by Ridlatama Group subsidiaries in 2010. According to Mr. Noor, he terminated the licenses as they were being misused. Mr. Noor issued the license for Ridlatama Group and not Churcill.
However, Ridlatama sold its shares to Churcill, an action which Mr. Noor deemed as a violation the regulations on foreign direct investment. Under the applicable regulations, foreign parties are not allowed to hold the licenses in question.
Churchill insisted on suing the Government because it owns 75% of the shares in four of Ridlatama’s subsidiaries, PT Ridlatama Mineral, PT Investama Resources, PT Ridlatama Trade Powerindo, and PT Investmine Nusa Persada.
(hot/kc)