Thursday, 23 February 2017 | 09:36 WIB
5) Jokowi to raise joint patrols in South China Sea
6) Gov’t Offers Three Options over Dispute to Freeport
TEMPO.CO, Surabaya - The central government has not yet reached an agreement with PT Freeport following the issuance of a new bill. Energy and Mineral Resources Minister Ignasius Jonan offered three options to the US-based mining company.
"We gave [Freeport] six months for negotiations," Jonan said after giving a public lecture at Airlangga University in Surabaya on Thursday, February 23, 2017.
The first option is to urge Freeport to comply with existing regulations while sitting in negotiations on investment stability. The second option is to amend the Law on Mineral and Coal. The last one is to settle the dispute in an international arbitration.
However, Freeport refused the options, as they viewed that the shift from the contract of works (KK) to special mining license (IUPK) would threaten their business sustainability. Freeport planned to file a lawsuit against the government with arbitration if the solution to the dispute remains deadlocked.
In response to the threat, Jonan insisted on the three options.
"There were three options at that time. If they don’t like them, they are welcomed to discuss them with the parliament or us to discuss an amendment to the Law on Mineral and Coal. Or, they can take it to arbitration," Jonan said.
Jonan added that the government is ready to face the lawsuit.
"We're not only ready, but we can also take this case to arbitration," Jonan added.
Jonan asserted that the shift from the contract of works to the special mining license is not an obligation. Contract holders are allowed to maintain their contracts provided that they comply with Law No. 4/2009 on mineral and coal mining.
"We don't force [miners to shift to the IUPK]. For instance, PT Vale remains a contract of works holder, but they follow the rules," Jonan explained.
Contract holders are required to build smelters within five years as mandated in Article 170 of the Law on Mineral and Coal.
"It's already been three years. If there's still time, [miners] must immediately shift from contract of works to special mining license,” Jonan said. ARTIKA RACHMI FARMITA
7) Airlangga University Supports Freeport’s Nationalization
TEMPO.CO, Surabaya - Hundreds of students of graduate and doctorate programs at the Airlangga University in Surabaya declared their supports for the government in addressing the issue with PT Freeport Indonesia.
The declaration of supports was set forth on a banner signed by Energy and Mineral Resources Minister Ignasius Jonan on the sidelines of a public lecture held at the university on Thursday, February 23, 2017.
The white banner contains a red colored writing that says, "Freeport, land and water in Indonesia shall be used for the greatest benefit of the Indonesian people, not for foreign countries!"
"There's nothing wrong with the declaration. It's set forth in Article 33 of the 1945 Constitution," Jonan said in response to a question related to the declaration.
Jonan added that there is no law that is not based on the 1945 Constitution. President Joko "Jokowi" Widodo, Jonan added, welcomes investment from foreign and domestic investors.
Jonan revealed that the central government expects the economy to grow, because it would be impossible to depend on the State Budget without private sector’s participation.
Airlangga University rector Mohammad Nasih said that the university supports the government and Jonan in addressing the dispute with Freeport.
"In accordance with Article 33 paragraph 3 of the 1945 Constitution, natural resources, including mineral and coal shall be under the powers of the state and shall be used to the greatest benefit of the people," Nasih reiterated.
ARTIKA RACHMI FARMITA
Liza Sani The Jakarta Post
Jakarta | Thu, February 23, 2017 | 10:39 pm