REPUBLIKA.CO.ID, JAKARTA -- Gold miner PT Newmont Nusa Tenggara (NNT) has filled an international arbitration against Indonesian government's ore-export ban policy.

The company asked interim solution to allow NNT to resume exporting copper concentrate so that its Batu Hijau mine could resume operations. Minister of Industry, MS Hidayat assessed that the arbitration would disserve the subsidiary of United States-based Newmont Corporation.

"They will be lose. If the company cannot wait more longer, so the risk will be taken by them," Hidayat said on Friday.

According to Hidayat, Newmont must wait for the completion of negotiations between government and PT Freeport Indonesia. It depends on the negotiation result because the two companies plan to build a smelter.

Newmont and Freeport have committed to build a  smelter in Indonesia. If both companies do not want to wait, then there is a risk, namely the export ban. Hidayat confirmed that government was ready to face the arbitration.

Meanwhile, Chief Economist at Standar Chartered Bank, Fauzi Ichsan said that the Newmont case should not enter the arbitration as the problem should be resolved through negotiation.

"If this case enters the international arbitration, it will trigger sentiment between local and foreign investors," he said.

It will affect the capital flows to Indonesia. This country still requires capital flows as the high current account deficit and state budget deficit. When Indonesia lose at the arbitration, it will cause the negative impact on investors' sentiment.

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