Indonesian Energy & Mineral Resources Ministry firmly refutes AFP's article

JAKARTA, Indonesia, March 9, 2017 /PRNewswire/ -- In regard to the article from Agence France-Presse (AFP) entitled "Jakarta Mining Policy Shift Sparks Turmoil" published on channelnewsasia.com (3/5), The Business Times, Singapore (3/6), and todayonline.com (3/6), Ministry of Energy and Mineral Resources of Republic of Indonesia would like to state our concerns and objection as follows:

1. The article title is misleading;
2. The news is tendentious, imbalanced, and discredits the Government of Indonesia;
3. We hereby present our objections in detail and share our explanations:
   1. The Government of Indonesia has been continuing to maximize and fully support any investments in Indonesia both foreign and local investment without any exception;
   2. In the event of metallic mineral mining, the Government of Indonesia is consistent to increase mineral added value through domestic smelting process. The statement is in line with Law of Mineral and Coal No. 4/2009 that has been followed up by the issuance of Government Regulation No. 1/2017 as a revision and follow up to the previous issued regulations;
   3. By referring and subjecting to such Law and Government Regulation, the Government of Indonesia respects all content of the agreement that has been previously agreed and declares to be valid;
   4. Based on the aforementioned explanations, if Contract of Work holders conduct downstream processing within five (5) years since the promulgation of Law of Mineral and Coal No. 4/2009 (article 169 and article 170), they may continue their business and ARE NOT required to convert the contract become Special Mining Permit.
   5. The fact that Contract of Work holders have not conducted downstream processing as referred to in such law, the Government of Indonesia offers amendment of Contract of Work into Special Mining Permit. Therefore, according to article 102 and article 103 Law of Mineral and Coal No. 4/2009, they are permitted to export concentrate and must construct smelter within five (5) years since the issuance of Government Regulation No. 1/2017. The progress of smelter construction will be verified by an independent verificator every 6 (six) months. If such progress is not reaching minimally 90% of the plan, the export recommendation will be repealed;
   6. By achieving conditional concentrate export permit, the operation may continue, the employment termination may be avoided, and within the next five years the potency of state revenue for Rp 42 trillion and employment for about 45.000 workers will be achieved;
   7. Divestment obligation up to 51% as being mandated by the Law is meant to facilitate mining companies in Indonesia to partner with the Government of Indonesia and any other national partners. The most important thing is to bring justice for the people of Indonesia as the absolute owner of mineral resource wealth as the divestment obligation has been regulated in the contract;
   8. Principally, Indonesia's mining policy is prioritized to materialize justice for all the people of Indonesia as well as to maintain investment sustainability both for foreign and national investment. The Government of Indonesia is negotiating with mining companies to achieve consensus from all parties.

For further information, please contact:

Sujatmiko
Head of Communication, Public Information Services, and Cooperation Bureau, 
Ministry of Energy and Mineral Resources
Republic of Indonesia
(+628128016414) or email: klik@esdm.go.id