Ada Pertanyaan? Hubungi Kami 
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Ada Pertanyaan? Hubungi Kami Marcell Sihombing, Kartini L. Makmur
Freeport’s contract of work (kontrak karya) has been the subject of controversy in recent years. Many parties believe that the contract should not be extended. The government, however, has decided to use another approach, by converting the contract into a special mining license (IUPK). Academic circlessees this move as circumventing the current mining regulatory framework.Hikmahanto Juwana, an international law professor atUniversitas Indonesia, criticized the conversion, stating that the contract remains valid until it expires according to the Mining Law. Therefore, converting the contract of work into an IUPK is somewhat illogical.
“The contract must expire in2021. The contract extends if the people agreed to it, and otherwise it will expire. Converting the contract into an IUPK ismorally corrupt. That is what using aloopholeis, legally right but morally incorrect,” Prof. Juwana explained.
Prof. Juwana warnedthe President to be careful aboutconverting Freeport’s contract. The public wantsthe government to takeover Freeport’smining activities. On the other hand, the current legal framework providesthatanIUPK is granted for 20 years, and might be extended twice, with each extension for 10 years. In other words, underthe current IUPK, Freeport cancontinue operationsuntil 2055.
Lawmaker Syaikhul Islam Ali (Commission VII) remindedthat the renegotiationswith Freeport should be discussed two years before the contract expires in2021. He regrets the decision toconvert the contract into an IUPK, saying that this government sits on the same side of the table asFreeport.
“I must remind President Jokowi that he serves the constitution and the will of the people. Our sovereignty as a nation and a state must not bow down to foreign companies,” Mr. Ali emphasized.
Defending the conversion policy, Dadan Kusdiana, Head of the Public Communication Center atthe Ministry of ESDM, said that thisis a legal breakthrough. Mr. Kusdiana explained that this move does not violate the Mining Law, because the policy itself providesthat operational extensionscan be applied two years prior the expiration of acontract.
Mr. Kusdiana further elaborated that Article 169b of the Mining Law regulates that all contracts of work must be converted intoanIUPK at some point. On the other hand, Freeport needssome sort of guarantee on its operational continuity, which is the reason why the government suggested acceleratingthe conversion.
Mr. Kusdiana also added that an IUPK offers additional benefits to the government unlike the prior framework. A contract of work puts the state and investors in equalpositions, whichpreventsthe government fromendingthe contract arbitratily. In contrast, using an IUPK enables the government to revoke the license at anytime.
(hot/kc)
Marcell Sihombing, Kartini L. Makmur
Freeport’s contract of work (kontrak karya) has been the subject of controversy in recent years. Many parties believe that the contract should not be extended. The government, however, has decided to use another approach, by converting the contract into a special mining license (IUPK). Academic circlessees this move as circumventing the current mining regulatory framework.Hikmahanto Juwana, an international law professor atUniversitas Indonesia, criticized the conversion, stating that the contract remains valid until it expires according to the Mining Law. Therefore, converting the contract of work into an IUPK is somewhat illogical.
“The contract must expire in2021. The contract extends if the people agreed to it, and otherwise it will expire. Converting the contract into an IUPK ismorally corrupt. That is what using aloopholeis, legally right but morally incorrect,” Prof. Juwana explained.
Prof. Juwana warnedthe President to be careful aboutconverting Freeport’s contract. The public wantsthe government to takeover Freeport’smining activities. On the other hand, the current legal framework providesthatanIUPK is granted for 20 years, and might be extended twice, with each extension for 10 years. In other words, underthe current IUPK, Freeport cancontinue operationsuntil 2055.
Lawmaker Syaikhul Islam Ali (Commission VII) remindedthat the renegotiationswith Freeport should be discussed two years before the contract expires in2021. He regrets the decision toconvert the contract into an IUPK, saying that this government sits on the same side of the table asFreeport.
“I must remind President Jokowi that he serves the constitution and the will of the people. Our sovereignty as a nation and a state must not bow down to foreign companies,” Mr. Ali emphasized.
Defending the conversion policy, Dadan Kusdiana, Head of the Public Communication Center atthe Ministry of ESDM, said that thisis a legal breakthrough. Mr. Kusdiana explained that this move does not violate the Mining Law, because the policy itself providesthat operational extensionscan be applied two years prior the expiration of acontract.
Mr. Kusdiana further elaborated that Article 169b of the Mining Law regulates that all contracts of work must be converted intoanIUPK at some point. On the other hand, Freeport needssome sort of guarantee on its operational continuity, which is the reason why the government suggested acceleratingthe conversion.
Mr. Kusdiana also added that an IUPK offers additional benefits to the government unlike the prior framework. A contract of work puts the state and investors in equalpositions, whichpreventsthe government fromendingthe contract arbitratily. In contrast, using an IUPK enables the government to revoke the license at anytime.
(hot/kc)