The government would in principle always respect its contracts with foreign companies but contracts that were made tens of years ago and now considered unfair for Indonesia had to be renegotiated.
Jakarta (ANTARA News) - President Susilo Bambang Yudhoyono has asked ministers concerned to immediately begin talks with foreign companies whose mining, oil or gas work contracts would be renegotiated.

In a policy speech after installing the newly reshuffled cabinet he said he had received a report that several foreign companies had agreed to discuss contract re-negotiations.

"I have received reports that a number of foreign companies are willing to discuss it . Therefore, the ministers concerned must immediately follow it up, especially to make the contracts` more advantageous to the Indonesian nation," he said.

The government would in principle always respect its contracts with foreign companies but contracts that were made tens of years ago and now considered unfair for Indonesia had to be renegotiated.

"I think, if the contracts are not fair and too much so, we must discuss them again in proper manner, meaning the renegotiation talks should stop short of terminating the contracts," he said.

The plan to renegotiate mining, oil and gas contracts would be one of the government`s focuses in the next three years and its implementation the task of newly installed minister of energy and mineral resources Jero Wacik.(*)

Editor: Heru Purwanto
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