The director general of mineral and coal mining of the ministry of energy and mineral resources, Thamrin Sihite, said here on Tuesday contracts made with investors would be honored.
"Like in a marriage if divorce is to be done it must be based on an agreement. So it will not be done just like that," he said.
He said a number of mining contracts have been agreed to be adjusted with the law. He however declined to name the contracts. "As soon as deal is made we immediately sign it," he said.
He said the points to be re-negotiated include the term, size of mining area and royalty.
Thamrin admitted that the royalty is still small but he said he could understand it because the contract was signed when the government was badly in need of foreign investment.
"We will compare the contracts with those of other countries such as Chili," he said.
He said the re-negotiation would also involve other offices such as financial and legal institutions.
The government has so far signed working contracts with 42 companies and made coal exploitation working agreements with 76 companies.
(T.K007/H-YH/HAJM/S012)
Editor: Priyambodo RH
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