‘Beauty contest’ urged for Newmont’s shares

West Nusa Tenggara senator Diyah Ratu Ganefi has urged the central government to hold a ‘beauty contest’ for domestic investors to test their commitment to making a partnership with the provincial government in acquiring the remaining 7 percent of gold miner PT Newmont Nusa Tenggara’s shares.

“Domestic investors must show their strong commitment to coalescing with the provincial government to purchase Newmont’s shares because the company’s required divestment is aimed at improving the social welfare of the people in the province,” she said in Jakarta on Tuesday.

Diyah said the Regional Representatives Council (DPD) and the House of Representatives would closely monitor the contest to make sure investors offering to make a partnership with the government would not only pursue their business interests but also make a significant contribution to the province and locals.

“All investors taking part in the divestment have to make sure that Newmont will continue paying royalties and dividends annually to the provincial government and they are used to accelerate the economic development and improving the local people’s social welfare,” she said.

Separately, a civilian coalition for people’s social welfare in West Nusa Tenggara filed a lawsuit against Finance Minister Agus Martowardojo, Newmont and the head of the state investment agency (PIP) over the deal between the PIP and Newmont over the investment.

“We want the court to annul the deal between the government and Newmont and we want the government to comply with the recent verdict of the Constitutional Court which affirmed the province’s constitutional rights to purchase the 7 percent of shares,” said coalition coordinator Ulung Purnama.

The House and the Supreme Audit Agency declared the deal between Newmont and the PIP illegal because the funds used to purchase the shares were taken from the state budget and without the approval of the House. (swd)