Miners Reluctant to Renegotiate; Govt: We Won’t Hurt Them

Selasa, 18 Desember 2012 | 09:09

The Government ensure will not hurt the mining players in renegotiating the work contract (KK) and coal contracts of work (PKP2B) that is currently underway.The Director General of Mineral and Coal Mining with the Ministry of Energy Thamrin Sihite said the Government was ready to renegotiate all crucial issues in the renegotiation process and do not want companies holding KK-PKP2B suffered from losses.
Thamrin said the royalties and tax adjustments are actually to restore the use of natural resources for the people so that they can enjoy the wealth of their natural resources.
Director General Sihite didn’t expect the employers to continue discussing the adjustment of royalties, taxes, divestments and concession areas as the Government prepared to accommodate wishes of the company if necessary and for the long-term interests.
For business area, for instance, Thamrin ensured the Government will grant permission business area larger than the regulated provision legislation if the miner has a long-term plan in the country.
 "We can calculate the total area required if there are long-term plans. If it needs more, it will be approved with no record of a long-term plan, "he explained.
Therefore employers should not keep thinking of personal gain in exploiting the mining. "If with the royalties and taxes are they are still gaining reasonable, I don’t see the reason why they want to back off. We will also look at whether the other companies will still remain profitable, as we do not want them to lose, "he said.

As per to date, only four out of 37 mineral miners and 15 out of 74 coal companies holding PKP2B that are ready to sign the contract renegotiation amendment.

As is known, the size of mine exploitation area, contract extension, taxes and royalty based State revenues, divestment obligations, liabilities, processing and refining, and the mandatory use of domestic goods and services is still a major issue of the KK-PKP2B renegotiation process pursued by the Government.

The mining businesses were asking the Government to be transparent. The Vice Chairman of the Indonesia Mining Association Tony Wenas asked the Government to consider the miners future business.

Tony said the miners were prepared to sit down in the negotiation table based on spirit of mutual benefit. (35/dpr/msw)
by Lili Sunardi
source http://en.bisnis.com