"I am optimistic," the Director General of Mineral and Coal Mining, Thamrin Sihite, said here on Tuesday in response to speculation that Freeport would refuse to renegotiate its contract.
Based on data on the status of contract re-negotiations by September 29, 2010, a number of companies had refused to renegotiate including PT Freeport Indonesia and PT Nabire Bakti Mining.
According to the data some mining companies had approved part of the articles renegotiated such as PT Newmont Nusa Tenggara and PT Vale Indonesia Tbk. (formerly PT International Nickel Indonesia (Inco) while others all the articles such as PT Koba Tin and PT Agincourt Indonesia.
Thamrin said the government would stick to the provisions set contained in Law Number 4 of 2009.
According to the law on coal and minerals several issues would be renegotiated. They include bigger state revenue, limits on mining area, divestment obligation and obligation to process mining products domestically before 2014.
Minister of Energy and Mineral Resources Darwin Zahedy Saleh said as a sovereign country Indonesia respects the sanctity of contracts.
"But we will carefully and resolutely fight for what the people want namely a bigger added value from our natural resources," he said.
He admitted contract re-negotiations would affect investors that have contributed for a long time such as Freeport.
However the government has to implement the people`s mandate put in the law on minerals and coal. "Therefore the government will carry out the re-negotiations well," he said.(*)
Editor: Heru Purwanto
Copyright © ANTARA 2011
