Lupa Kata Sandi? Klik di Sini

atau Masuk melalui

Belum Memiliki Akun Daftar di Sini


atau Daftar melalui

Sudah Memiliki Akun Masuk di Sini

Konfirmasi Email

Kami telah mengirimkan link aktivasi melalui email ke rudihamdani@gmail.com.

Klik link aktivasi dan dapatkan akses membaca 2 artikel gratis non Laput di koran dan Majalah Tempo

Jika Anda tidak menerima email,
Kirimkan Lagi Sekarang

Challenging Newmont

Translator

Editor

30 July 2014 14:28 WIB

TEMPO.CO, Jakarta - So far, mining giant Newmont Nusa Tenggara is not budging from its plan to take the government's case of taxing mineral ores to arbitration. The company has every right to take this position. But the government's decision to oppose it, after its offer of negotiations was rejected, is not an arbitrary stance.

The government's move to consider this lawsuit is a way for the regulator to uphold the law. And it should not be seen as excessive if, when it appoints a legal team and prepares for the hearing, the government initiates a counter-suit at a different arbitration court.

The relevant legislation is Law No. 4/2009 on Mineral and Coal Mining. This law, which came into effect on January 12, 2014, requires minerals to be processed domestically before being exported. Along with this law, the government also issued regulations on exports, export duties and a ban on exports of copper concentrate, which will come into force in January 2017. All these regulations are aimed at guaranteeing the supply of raw materials for the mineral processing and purification industries as well as preserving the environment.

Newmont has logged its objections to these new rules, claiming it is unable to fulfil its obligations to buyers because of the export ban on ores and the export duties on mineral concentrates. Newmont maintains that this new tax is a breach of their agreement, which according to Newmont, does not obligate it to pay export duties.

Newmont had initially taken the negotiation route to submit is objections, but before anything was ever reached the mining company took its case to the International Center for the Settlement of Investment Disputes. Not surprisingly, the government was taken aback by the move and asked Newmont if it still wanted to negotiate or not. In any case, negotiations are still the best way to find a mutually beneficial solution. But if the door has been closed, several possibilities need to be considered, as well as the benefits that would be obtained from a legal dispute at an international tribunal.

Newmont may simply want to continue with the terms of the agreement it signed with the Indonesian government, as well as avoid extra costs that it had not calculated at the outset. The problem is that the company's interpretation of its legal basis may be very different from that of other parties.

Consider the government's position. In the contract, the government is not the regulator, but a partner or legal entity. As the regulator, the government can apply new rules as long as it is in the public interest. Export duties, seen in this context, should not be seen as a problem-they are not a tax. The aim is simply to push for the construction of smelters.

The government could use this argument in court. It is a strong position. But it should still consider the possibility of losing and calculating which state assets could be confiscated in the eventuality of such a loss. (*)



Many Brokers in Indonesian Politics

12 jam lalu

Many Brokers in Indonesian Politics

Parties supporting Prabowo Subianto are vying for ministerial posts. There is a wish to see the PDI-P join the coalition.


Election Fraud in a Neighboring Country

1 hari lalu

Election Fraud in a Neighboring Country

Seven members of the Kuala Lumpur PPLN are proven to have inflated the number of voters for the 2024 elections.


Because the State Is Not an Entrepreneur

2 hari lalu

Because the State Is Not an Entrepreneur

The government plans to accelerate the privatization of state-owned enterprises. Stop paying out budget funds for state companies.


Ignoring the Rights of Indigenous People

3 hari lalu

Ignoring the Rights of Indigenous People

Indigenous people are taking legal action against the President and the DPR for delaying deliberations of a bill. It has taken second place to the int


BTN Syariah's Acquisition of Bank Muamalat

7 hari lalu

BTN Syariah's Acquisition of Bank Muamalat

The government is to combine BTN's Sharia business unit with Bank Muamalat. This could lead to problems.


Lackadaisical Disaster Mitigation

8 hari lalu

Lackadaisical Disaster Mitigation

Hydrometeorological disasters hit a number of areas in Indonesia. Ironically, mitigation efforts are not yet a priority.


Child Pornography Syndicate in Indonesia

9 hari lalu

Child Pornography Syndicate in Indonesia

The crime of child pornography is continuing to spread. Perpetrators can operate from inside the jail.


Jokowi's Hand in the Golkar Party

10 hari lalu

Jokowi's Hand in the Golkar Party

Jokowi has ambitions to take control of the Golkar Party. It is his new way to stay relevant to those in power.


The Backers of Illegal Tin Mining

13 hari lalu

The Backers of Illegal Tin Mining

The Attorney General's Office is investigating alleged corruption over tin mining permits in Bangka Belitung.


The Importance of the Right of Inquiry

14 hari lalu

The Importance of the Right of Inquiry

Jokowi is taking Indonesia right back to the start of the Reformasi era. The right of inquiry could be a way to save democracy.