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