Indonesia Fined US$ 1 Billion over Mining Lawsuit
27 February 2014 14:44 WIB
TEMPO.CO, Jakarta - The International Center for the Settlement of Investment Disputes (ICSID) overruled the Indonesian government's objection over the lawsuit filed by a UK company, Churchill Mining. Indonesia is expected to pay US$1.05 billion (around Rp 12.17 trillion) in compensation to the company.
The Government reject the ICSID decision to annul a mining investment proposed by Churchill. The government said that the dispute could only be settled according to agreements between Indonesia-Australia and Indonesia-the UK, because Churchill's mining permit was not registered at the Investment Coordinating Board (BKPM).
However, ICSID believed that it had the jurisdiction over the lawsuit, because Churchill was considered an investor that must be protected. Thus, ICSID decided Indonesia must compensate Churchill with interest, as demanded by the company.
Energy and Mining Resources Minister Jero Wacik said that he was ready to handle the case. "We'll face it," he said yesterday.
The case started when Churchill Mining filed a lawsuit at the Samarinda Administrative Court in 2010 and lost. The mining company sued the decision of East Kutai Regent, Isran Noor, who annulled its mining license (IUP), after it acquired a local company named Ridlatama Group in 2007. Churchill filed an appeal with ICSID.
GUSTIDHA BUDIARTIE | FERY FIRMANSYAH