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Jakarta Post

Foreign mining firms required to divest shares

  • Alfian

    The Jakarta Post

Jakarta   /   Tue, June 30 2009   /  08:28 am

The government will require 20 percent of shares in mining companies entirely owned by foreign shareholders to be divested to local partners, in accordance with the new mining law,
an official says. Speaking at a forum on Monday, Bambang Setiawan, the director general for coal, minerals and geothermal energy at the Energy and Mineral Resources Ministry, said the government would issue a regulation in August on the divestment obligation. “The law stipulates that foreign mining license holders must divest their shares to the central government, regional government, state enterprises or domestic private companies starting in the fifth year after production starts,” Setiawan said. Director for coal and mineral utilization Bambang Gatot Ariyono said the government was in the process of finalizing the new regulation, which will implement the new mining law passed i...