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Govt to simplify extensions of mining contracts
Energy and Mineral Resources Minister Sudirman Said has said that there will be several modifications to government regulations related to mining activities
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nergy and Mineral Resources Minister Sudirman Said has saidthat there will be several modifications to government regulations related to mining activities.
'With the current PP [Government Regulation], the contractor can only propose a contract extensions two years before the contract ends,' Sudirman said in Jakarta on Thursday.
With the new modification, according to Sudirman, the investor can propose the contract extension earlier, from 10 years to two years before the contract ends.
The mining industry is one of government's targets for deregulation specified in the economic policy package announced by President Joko "Jokowi" Widodo on Wednesday.
Sudirman further said that deregulation in the energy sector was directed at boosting economic growth, such that the government could ensure legal certainty and make investment easier.
The Ministry General Secretary Teguh Pamuji said the implementation of Government Regulation 77/2014 did not boost the investment climate.
According to Teguh, this contract extension is needed, considering the large amounts of money invested by businesspeople and the high risks they face. (bbn)
