REPUBLIKA.CO.ID, JAKARTA – British company Churchill Mining Plc was blackmailing the Indonesian government over an allegedly “improper unilateral decision to revoke the licenses” of allegedly world’s 7th largest coal mine in East Kalimantan, an Indonesian lawyer said. Churchill disputed with the Indonesian government over the East Kutai Coal Project (“EKCP”).

“Churchill sues the Indonesian government 2 billion USD and we think that is a blackmail,” said Didi Darmawan, lawyer of Indonesia’s East Kalimantan regency government, who spoke in a press conference on Friday.

Darmawan spoke to media on the recent move by the British company to file a claim of international arbitration against the Republic of Indonesia. On contrary, according to Darmawan, Churchill breached various Indonesian laws and regulations resulting in the current disputes with the Indonesian government. 

While East Kutai regent Isran Noor said that he would never surrender and keep on fighting to win the international legal battle. “No, we won’t surrender as we’re on the right position. Churchill has breached many laws and regulation in Indonesia,’ he said.

Churchil’s claim

Churchill in its website on May 23, 2012 said it was actively moving forward with its international arbitration claim after it received written confirmation that its appeal in the Indonesian Supreme Court had failed. The company revealed in April that notations on the register of the Supreme Court showed the court intended to reject the appeal. 

"We are disappointed in the written decisions confirming the rejection of our appeal,” said the Chairman, David Quinlivan.

“We are underway with the International Arbitration claim against the Republic of Indonesia to seek a legitimate remedy for our shareholders and protect our rights as a foreign investor in Indonesia."  The company believes these actions are in direct breach of both Indonesia's investment laws and Indonesia's obligations under a number of international investment treaties. 

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