Change of Mining Business Working Agreements into Special Mining Business Licenses Under the Indonesian Mining Law

DOI

10.2991/iceml-18.2018.25How to use a DOI?

Keywords

mining business working agreements, special mining business licenses, indonesian mining law

Abstract

The creation of Law Number 4 of Year 2009 on the Mining of Minerals and Coal (Indonesia Mining Law) has caused changes to occur on Mining Business Working Agreements, turning them into Special Mining Business Licenses, which is quite significant and has brought up several issues. Several of these changes include, among others, forbidding companies who have working agreements to conduct exports of concentrates, instead requiring them to perform enrichment first; changes in the schema of tax obligations and royalties that must be paid by the company, wherein the company must follow general tax regulations that apply in Indonesia; changes in the areas of mining operations, becoming more restricted than before; and changes in the position of relationships of the company and the government. These changes have raised quite serious reactions from several investors, one of them being PT Freeport Indonesia. PT Freeport Indonesia has harshly reacted by rejecting the change from Working Agreements into Business Licenses and accusing Indonesia to have defaulted because of violating the principle of Pacta Sunt Servanda and will file a legal suit through international arbitration. Meanwhile, Indonesia stands firm that Indonesia has the authority to regulate policies and politics within the country. Indonesia has provided several options regarding the changes in policy and adequate time to comply as a result of the enforcement of the Indonesia Mining Law.

Copyright

© 2018, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Hanif Nur Widhiyanti
AU  - Talitha V. Sahaly
PY  - 2018/09
DA  - 2018/09
TI  - Change of Mining Business Working Agreements into Special Mining Business Licenses Under the Indonesian Mining Law
BT  - Proceedings of the 2018 International Conference on Energy and Mining Law (ICEML 2018)
PB  - Atlantis Press
SP  - 103
EP  - 107
SN  - 2352-5428
UR  - https://doi.org/10.2991/iceml-18.2018.25
DO  - 10.2991/iceml-18.2018.25
ID  - Widhiyanti2018/09
ER  -