Hatta says mining share divestment flexible

By Bambang Atmaja

Coordinating Minister for Economy Hatta Rajasa said that the government policy on share divestment of 51 percent will be flexible as the sector need more time to return investment.

He said that the period of the divestment should be approached case by case, not in general.

"According to me, the rule must be flexible, because the divestment by up to 51 percent after ten years production is too early," Minister Hatta told reporters at State Palace.

The minister said that the flexibility aimed at maintaining already good investment climate in Indonesia.

"We cannot force the rule because it could cause investors to be reluctant to come in," said Hatta.

The government required foreign investors to divest 51 percent of its shares to local partners after 10 years of operation.

Editing by Adianto P. Simamora