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Jakarta Post

Editorial: Bombarding foreign miners

  • The Jakarta Post

  /   Fri, March 9 2012   /  08:32 am

There is nothing completely new within the latest government regulation (PP No. 24/2012) that requires foreign mining companies to divest their controlling stakes in Indonesian mining ventures to national interests after their 10th year of commercial production.

Nor did the ruling come as a painful surprise to foreign mining companies, because President Susilo Bambang Yudhoyono issued that regulation on Feb. 21 to implement the 2009 Mining Law, which among other things stipulates general guidelines for that mandatory divestment.

Nor did the regulation reflect policy inconsistency because several foreign companies had made such divestments, though through legal and political turbulence. BP and Rio Tinto suddenly sold their entire stake in PT Kaltim Prima Coal, one of the country’s largest coal mines, to PT Bumi Resources, a private company, owned partly by politician/busin...