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Ada Pertanyaan? Hubungi Kami Marcell Sihombing, Kartini L. Makmur
The Indonesian Government is currently drafting an amendment to Government Regulation No. 77 of 2014 on Mineral and Coal Mining Business Activities (2014 Regulation) in a bid to streamline licensing procedures with regard to mining activities in the country.Bambang Gatot, the Director General of Minerals and Coal at the Ministry of Energy and Mineral Resources, recently stated that his institution had composed and filed a draft revision for further deliberation. He also asserted that the revision did not specifically pertain to a particular mining company, although the revision in question was filed not long after the status of PT Freeport Indonesia was changed. Mr. Gatot has also asserted his firm belief that the revision will greatly improve efficiency with regard to the licensing process.
“The draft revision was not created in order to simply benefit Freeport, but has coincidentally been drafted at the same time as Freeport’s change in status,” Mr. Gatot clarified in a statement made in Jakarta last Friday.
Furthermore, Mr. Gatot explained that once the draft revision has been signed into law, it will apply to all companies needing to extend their contracts, including Freeport. Ultimately, every mining company in possession of an Indonesian work-contract license will need to review its investment value, as the new ruling will not just apply to one or two of said companies, but to all of them.
A number of mining experts have asserted that the 2014 Regulation needs immediate revision. Most of these experts, however, have focused their analyses on the need to revise the Mandatory Divestment for Foreign Mining Companies clause, which is currently set at a 30-50 percent split.
Mining expert Simon F. Sembiring recently stated that the 2014 Regulation only appears to accommodate business interests. Freeport, for example, has divested a mere 30 percent of its shares, as it only operates within the framework of the underground-mining sector in Papua, leaving a slim profit for the government.
For this very reason, Mr. Sembiring has demanded that the government has the courage to revise the above divestment clause. Mr. Sembiring, however, has also emphasized that the revision should show a greater concern for the interests of the general public, instead of just focusing its energies on business interests.
“We hope that the government can resolve this issue, so that the 2014 Regulation moves beyond the interests of businesses. Since the revision is regulated under the larger umbrella of the country’s Mining Law, the government should not be concerned about violating the law,” elucidated Mr. Sembiring.
In accordance with the revision, Mr. Sembiring further stated that each holder of a working contract was normally subject to a contract-renegotiation clause which included the amount of divestment. However, divestment under recent MoUs drawn up by the government and businesses regarding contract amendments is not legally binding, and so the government still retains the right to modify the divestment clause.
(hot/ja/sp)
Marcell Sihombing, Kartini L. Makmur
The Indonesian Government is currently drafting an amendment to Government Regulation No. 77 of 2014 on Mineral and Coal Mining Business Activities (2014 Regulation) in a bid to streamline licensing procedures with regard to mining activities in the country.Bambang Gatot, the Director General of Minerals and Coal at the Ministry of Energy and Mineral Resources, recently stated that his institution had composed and filed a draft revision for further deliberation. He also asserted that the revision did not specifically pertain to a particular mining company, although the revision in question was filed not long after the status of PT Freeport Indonesia was changed. Mr. Gatot has also asserted his firm belief that the revision will greatly improve efficiency with regard to the licensing process.
“The draft revision was not created in order to simply benefit Freeport, but has coincidentally been drafted at the same time as Freeport’s change in status,” Mr. Gatot clarified in a statement made in Jakarta last Friday.
Furthermore, Mr. Gatot explained that once the draft revision has been signed into law, it will apply to all companies needing to extend their contracts, including Freeport. Ultimately, every mining company in possession of an Indonesian work-contract license will need to review its investment value, as the new ruling will not just apply to one or two of said companies, but to all of them.
A number of mining experts have asserted that the 2014 Regulation needs immediate revision. Most of these experts, however, have focused their analyses on the need to revise the Mandatory Divestment for Foreign Mining Companies clause, which is currently set at a 30-50 percent split.
Mining expert Simon F. Sembiring recently stated that the 2014 Regulation only appears to accommodate business interests. Freeport, for example, has divested a mere 30 percent of its shares, as it only operates within the framework of the underground-mining sector in Papua, leaving a slim profit for the government.
For this very reason, Mr. Sembiring has demanded that the government has the courage to revise the above divestment clause. Mr. Sembiring, however, has also emphasized that the revision should show a greater concern for the interests of the general public, instead of just focusing its energies on business interests.
“We hope that the government can resolve this issue, so that the 2014 Regulation moves beyond the interests of businesses. Since the revision is regulated under the larger umbrella of the country’s Mining Law, the government should not be concerned about violating the law,” elucidated Mr. Sembiring.
In accordance with the revision, Mr. Sembiring further stated that each holder of a working contract was normally subject to a contract-renegotiation clause which included the amount of divestment. However, divestment under recent MoUs drawn up by the government and businesses regarding contract amendments is not legally binding, and so the government still retains the right to modify the divestment clause.
(hot/ja/sp)