The Newmont case

The Newmont case

Finally, Newmont gold mining company in West Nusa Tenggara was
given a construction permit by Minister of Mines and Energy Ida
Bagus Sudjana. PT Newmont Nusatenggara has already received a
formal letter of decision and thus the polemic over Sudjana's
request for equity shares is closed.

The government's decision concerning Newmont shows that the
minister is willing to listen to public opinion. When news of the
government's request for ten percent equity first leaked, many
observers criticized the government's stance as inconsistent.
Former minister of mines Prof. Moh. Sadli even went so far as to
ask the government to honor the existing contract of work.

It may be that at the time the contract was closed, the
government was compelled to award a substantial advantage to the
investor, but now the agreement needed to be corrected in order
to bring it more in line with current demands. Sudjana mentioned,
among other things, growing nationalist demands.

Sudjana may be right and maybe his predecessor did fail in
taking into account future developments. But perhaps the root of
the problem is much more simple than that. We often lack patience
and tend to expect a quick return or disregard already agreed
upon commitments. This is all good and well, as long as it is
done in a fair and ethical manner and any impression of trickery
is avoided.

We are confident that the government will preserve the
existing national investment climate by observing the rules of
the game -- that is to say, by seeing to it that principles of
transparency and accountability in all decision-making processes
are adhered to.

-- Bisnis Indonesia, Jakarta