Legal Studies Divested to Contract of Work PT. Freeport Indonesia
- DOI
- 10.2991/iceml-18.2018.73How to use a DOI?
- Keywords
- legal study, divestment, contract of work
- Abstract
Talks on divestment, especially the divestment of mining shares began to be discussed by experts and the government since the dispute over the divestment of shares between the Government of Indonesia and PT. Freeport Indonesia and PT. Newmont Nusa Tenggara. The problem of divestment in the mining sector is a problem that is getting the spotlight of many parties, because it involves a sense of nationalism of the nation. Divestment is the Government's way to carry out Article 33 paragraph (3) of the 1945 Constitution of the Republic of Indonesia (1945 Constitution of the Republic of Indonesia) that Mining on natural wealth is used for the welfare of the society. Implementation of divestment must be recognized is not easy to implement considering this concerns the continuity of a business entity and can not be denied the existence of various interests behind it. Regulation on divestment which has been arranged starting from Law Number 1 Year 1967, Law Number 25 Year 2007, Law Number 4 Year 2009, PP Number 23 Year 2010, Government Regulation Number 24 Year 2012, Government Regulation Number 77 Year 2014, Regulation of Minister of Energy and Resources Mineral Number 27 of 2013, not enough to accommodate issues related to divestment. The number of rules that exist can lead to legal dualism besides the rules have been there is not in detail set about divestment because there are things that have not been regulated in the rules. The government seemed hesitant in imposing divestment obligations to foreign investors. This certainly needs to be a record considering the existence of state control over natural resources according to the 1945 Constitution of the Republic of Indonesia. Based on the mandate of Law No. 4 of 2009 divestment, especially divestment of shares become obligations for foreign investors. However, in its development PT Freeport shares divestment experienced various obstacles during the realization. This is due to various factors such as the weakness of the applicable law, the legal uncertainty resulting from the transitional provisions of Law No. 4 of 2009, the lack of commitment from PT Freeport Indonesia and the absence of strict sanctions if the divestment obligations are not implemented. Article 119 Sub-Article a of Law Number 4 Year 2009 only regulates the revocation of permits if the holder of the license does not meet the provisions of the law while the sanction imposed only in the form of administrative sanctions. Meanwhile, other problems arise, namely the stock price offered by PT. Freeport Indonesia to the Government is too expensive which makes it difficult to realize this divestment.
- 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/).
Cite this article
TY - CONF AU - Tina Amelia AU - Faisal Santiago PY - 2018/09 DA - 2018/09 TI - Legal Studies Divested to Contract of Work PT. Freeport Indonesia BT - Proceedings of the 2018 International Conference on Energy and Mining Law (ICEML 2018) PB - Atlantis Press SP - 333 EP - 337 SN - 2352-5428 UR - https://doi.org/10.2991/iceml-18.2018.73 DO - 10.2991/iceml-18.2018.73 ID - Amelia2018/09 ER -