President to soon sign revised regulation on divestment obligation
Friday, October 3 2014 - 01:57 AM WIB
President Susilo Bambang Yudhoyono is expected to sign this week a revised government regulation on the obligation of foreign mining firms to divest stake to Indonesian government or investors.
?The revised (Governor Regulation No 24/2012 on mineral and coal mining) is now in the hands of the president. God Willing, it could be signed this week,? said Coordinating Minister for the Economy Chairul Tanjung, who is also ad interim Minister of Energy and Mineral Resources.
He explained that under the revised regulation, certain mining firms will be allowed to divest less than the existing minimum obligation of 51 percent.
He pointed out that integrated mining companies will be allowed to divest up to only 40 percent shares, while mining companies operating underground mines will be allowed to divest up to 30 percent.
The government is currently in the process of renegotiating mining contract with miners in the country to comply with the requirements set in the 2009 Mining Law, among others regarding the obligation of foreign mining firms to divest stake to Indonesian investors.
Editing by Reiner Simanjuntak