REPUBLIKA.CO.ID, JAKARTA - American mining company operating in Indonesia finally agreed two clauses stated in new legislation. The two clauses are the divestment its obligation by 51 percent and to increase the royalties to Indonesia.
"Some companies have expressed their interest to divest, like PT Freeport Indonesia and PT New Mont Nusa Tenggara," Coordinating Minister for Economic Affairs, Hatta Rajasa said after general meeting at his office on Thursday.
Government will assess the contract based on Law No. 4/2009 about Mineral and Coal while a team of experts is still discussing its implementation.
Government also asks the foreign companies to readjust royalty sharing. Previously, Indonesia gets one percent of total each company's revenue.
Next time, Ministry of Energy and Mineral Resources will be responsible for upstream industry, while Ministry of Industry will handle downstream sector.
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