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Indonesia over the moon after $9.4 million win against Churchill
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Victory — Law and Human Rights Minister Yasonna Laoly (center) announces in Jakarta on Thursday that the International Center for the Settlement of Investment Disputes (ICSID) turned down London-listed Churchill Mining Plc’s claim for Rp 26 trillion (US$2 billion) in damages. The company was also ordered to pay $9.4 million to Indonesia. (JP/Viriya Paramita Singgih)
T
he government is delighted with an international tribunal’s decision to turn down London-listed Churchill Mining Plc’s claim for Rp 26 trillion (US$2 billion) in damages in relation to expropriation, and to instead order the company to pay $9.4 million to Indonesia.
“We had been worried but we kept fighting over and over again because we were sure that we had a solid argument to win this case. Now, I’m proud to say that we did it,” Law and Human Rights Minister Yasonna Laoly told journalists on Thursday.
The International Center for the Settlement of Investment Disputes (ICSID), an affiliate of the World Bank, concluded the prolonged dispute between Indonesia and Churchill on Wednesday.
Churchill and its subsidiary Planet Mining Pty Ltd took Indonesia to the ICSID in 2012 after the East Kutai administration in East Kalimantan revoked the company’s coal mining permits without proper compensation. The company claimed that the actions had resulted in losses worth up to $1.3 billion.
“Several foreign investors might want to trick us and take benefits from this kind of dispute. But we won’t tolerate that. This should set a good precedent for us in the future,” Yasonna said.
Churchill is seeking a way to annul the decision and is currently working with law firm Clifford Chance to determine which grounds may be best to pursue. (ebf)
