"The plan must be discussed first with the DPR to determine possible risks that would be jointly borne."Jakarta (ANTARA News) - Constitutional Court chief justice Mahfud MD said the government had to postpone its plan to purchase PT Newmont Nusa Tenggara shares pending an approval from the House of Representatives (DPR).
"The purchase of seven percent of PT Newmont shares is indeed under the authority of the government but it must be done with a DPR approval," he said here on Tuesday.
Mahfud said based on the court`s consideration the decision to use the investment funds is indeed under the authority of the finance ministry but the plan for the purchase of PT Newmont shares worth Rp1 trillion and the rest through "Pusat Investasi Pemerintah" (Government Investment Center - PIP) mechanism put in the 2011 budget could not be used as the reference for it.
"The plan must be discussed first with the DPR to determine possible risks that would be jointly borne," he said.
The finance ministry`s secretary general, Kiagus Badaruddin, meanwhile said one of the benefits of buying Newmont shares is the preservation of national interest.
By being the majority shareholder, it could prevent a foreign company from being at will in Indonesia, he said.
"The government has a good intention by buying the divestment shares because through it it could deliver the mandate of Article 33 of the constitution," he said.
The finance ministry has so far viewed that no agreement from the DPR is needed for the purchase of the shares.
The DPR has been angered by the government for not being reported about the share purchase plan while the funds for it are taken from the national budget.
The Supreme Audit Board has also viewed that the government must ask for a permit from the DPR before conducting the purchase.
To settle the dispute the government then filed a lawsuit to the Constitution Court which then ruled against the government.
(T.KR-IAZ/H-YH/A014)
Editor: Priyambodo RH
Copyright © ANTARA 2012
