Mon, 20 Jun 2011

From:

VIVAnews The government is putting in order several contracts that involve foreign ownership in some projects in Indonesia. The foreign contracts to be organized are inheritance from the past.

“The foreign ownerships are attached in very old contracts,” said Coordinating Minister Economy Hatta Rajasa at parliamentary complex, Wednesday, June 1.

Hatta also cited the contracts with foreign parties in oil and gas sector. In the 1970s, through Law No. 8/1971 on State Oil and Gas Mining Enterprises, the Indonesian government invited foreign ownership under production sharing contract.

However, the government is currently amending the contract scheme. One of the measures is through Law No. 4/2009 on Mineral and Coal Mining.

He said that the law contains five important steps to take. First, forbidding the export of raw materials until 2014. “So we have to ask them to make the roadmap,” said Hatta.

Second, added value must be prioritized. “This means the industry must be built here,” he said.

Third, prioritizing domestic companies. Forth, the communities surrounding the companies must be developed. Lastly, renegotiation of the contracts must be carried out