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Jakarta Post

COMMENTARY: Freeport's threat of arbitration simply a ploy to block mining reform

  • Vincent Lingga

    The Jakarta Post

Jakarta   /   Thu, February 23, 2017   /  09:04 am
COMMENTARY: Freeport's threat of arbitration simply a ploy to block mining reform “We cannot just give up our rights that have been given in the CoW,” Richard C. Adkerson said in a press statement received by The Jakarta Post on Monday, Feb. 20 2017, adding that his company employed some 32,000 workers. (JP/Dhoni Setiawan)

"PT Freeport Indonesia [FI] reserves of all its rights [...] including the right to commence arbitration to enforce all provisions of the contract,” Freeport-McMoRan’s CEO Richard C. Adkerson asserted on Monday, referring to a protracted dispute with the Indonesian government. That threat is quite similar to those made by many other multinational companies (MNCs), which fear decreases in their huge profits following reforms by their host governments. Until around eight years ago international arbitration within the investor-state-dispute settlement (ISDS) mechanism had become a powerful weapon exploited by MNCs to circumvent national regulations and bully governments, notably in developing countries, to postpone or annul any reform or to silence environmental NGOs. At the time of its launch several decades ago, ISDS was indeed vital to encourage foreign investme...