Lahadalia said that the president urged him to be attentive to three aspects for the contract extension at the recent internal meeting about the issue.
"Mr President instructed me to (first) ensure that everything is compliant with the legal mechanism. The second is (to ensure) proper economic calculations, and the third is to ensure that it will benefit the national interest and the people," the minister stated after attending the internal meeting at the Presidential Palace complex here, Tuesday.
He said that the issue regarding the need to recalculate work contracts held by major mining companies, such as British Petroleum (BP), Vale, and Freeport, was discussed at the meeting.
According to Lahadalia, the government needs to discuss the issue because further assessment is needed before reaching the final decision.
The minister also noted that the government acknowledged the need for speed to respond to the needs of investors in the oil, gas, and mining sectors.
"Investment in the oil or mining sectors could not be decided in two or three years. The exploration itself needs 10-15 years, and the investment must start now. Yes, the speed of the government to respond to the investors' needs is essential," Lahadalia expounded.
Moreover, the government needs to properly oversee investors operating in Indonesia, as attracting them to invest in Indonesia is already a huge task, he pointed out.
The minister affirmed that the government continues to push for downstreaming processes in the national oil and gas and mining industries, including those operated by foreign investors.
He confirmed that the government would insert a clause necessitating foreign investors to involve state-owned or regional-owned enterprises in their operations in the contract extension.
"We will push for downstreaming and the involvement of state-owned or regional-owned companies (in their operational processes). We can no longer allow the option to extend (the contract) without the involvement of state and regional companies, and the government must optimize their roles on this aspect," Lahadalia remarked.
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Translator: Gilang Galiartha, Nabil Ihsan
Editor: Sri Haryati
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