Indonesian Ministry of Energy and Mineral Resources strongly refutes AFP's article
March 10 2017 - 5:00AM
JCN Newswire (English)
JAKARTA, INDONESIA, Mar 10, 2017 - (ACN Newswire) - In regard to
the article from Agence France-Presse (AFP) entitled "Jakarta
Mining Policy Shift Sparks Turmoil", published this week in The
Business Times of Singapore, ChannelnewsAsia.com and
Todayonline.com among others, the Ministry of Energy and Mineral
Resources of the Republic of Indonesia would like to state its
concerns and objections as follows:
1. The article title is misleading.
2. The news is tendentious and imbalanced, and discredits the
Government of Indonesia.
3. We hereby present our objections in detail and share our
explanations:
a. The Government of Indonesia encourages and fully supports any
investment in Indonesia, both foreign and local, without
exception.
b. The Government of Indonesia has been consistent in supporting
added value for metallic minerals in domestic downstream
processing, in line with Law No. 4 of 2009 on Mineral and Coal
Mining (Law 4/2009) and Government Regulation No. 1 of 2017 (GR
1/2017), the follow-up and revision to previously issued
Regulations.
c. Subject to Law 4/2009 and GR 1/2017, the Government of Indonesia
thereby respects the content of any mining agreement that was
previously agreed to and declared valid.
d. In view of the foregoing, if Contract of Work ('CoW') holders
conduct downstream processing within five (5) years of Law 4/2009
promulgating, they may continue their business and ARE NOT required
to convert the CoW to a Mining Business Permit ('IUP').
e. In cases where CoW holders have not conducted downstream
processing as referred to in Law 4/2009, the Government of
Indonesia offers to convert the CoW into a conditional IUP.
According to Law 4/2009, Articles 102 & 103, IUP holders are
permitted to export concentrate but must construct a processing or
smelting facility within five (5) years of the promulgation of GR
1/2017. Progress in smelter construction will be verified
independently every six (6) months; if progress within 5 years has
not reached 90% of plan, the export permit will be repealed.
f. By achieving a conditional permit to export concentrate, foreign
mining operations may continue for 5 years, employment termination
may be avoided, and potential state revenues of Rp 42 trillion and
employment for roughly 45,000 workers will be achieved.
g. The divestment obligation of up to 51% as mandated by GR 1/2017
is meant to facilitate the partnering of foreign mining companies
with the Government of Indonesia or any other national partners.
The most important principle is maintaining justice for the people
of Indonesia as absolute owner of the mineral wealth, as mandated
in the divestment obligation of the IUP contract.
h. Indonesia's mining policy in principle prioritizes material
justice for the people of Indonesia and maintains investment
sustainability for both foreign and national investors. The
Government of Indonesia is negotiating with mining companies to
achieve consensus from all parties.
For further information, please contact:
Sujatmiko
Head of Communication,
Public Information Services and Cooperation Bureau,
Ministry of Energy and Mineral Resources
Republic of Indonesia
Tel: +62 81 2801 6414 or email: klik@esdm.go.id
******
The Business Times, Singapore: http://bit.ly/2nd8pkx
Channel NewsAsia, Singapore: http://bit.ly/2m6OOki
TodayOnline, Singapore: http://bit.ly/2lKfj3K
Source: Indonesian Ministry of Energy and Mineral Resources
Copyright 2017 ACN Newswire . All rights reserved.
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