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Freeport's Demand Slows Down Renegotiation  

8 June 2014 01:12 WIB

Renegosiasi Kontrak Karya dengan Freeport Alot

TEMPO.CO, Jakarta - The renegotiation between the government with PT Freeport Indonesia and PT Newmont Nusa Tenggara did not go smoothly because Freeport wanted the smelter development to be linked with the extension of their contract in Indonesia. "When in fact according to the regulation contract, extensions could only be conducted two years before contracts expire," said Industry minister Mohamad Suleman Hidayat at his office, Friday, June 6.

According to the minister, the mining company's contract ends in 2021. Therefore, the authority to extend the contract would fall on the next governance. "That is why the negotiation has not been running smoothly at all," he explained.

In regard to the matter, Hidayat is planning to inform this to President Yudhoyono at a limited cabinet meeting next week. "The plan was this Friday, but the President is still in Batam so it may only be held next week," he said.

Hidayat said although the limited cabinet meeting would be held next week, he could not guarantee the issue would be resolved. "I cannot confirm whether the limited meeting with the President would produce a decision," he said.

AMIR TEJO




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