Freeport Contract extension will decide by Next President?

Freeport Contract extension will decide by Next President?

Queted from TEMPO.CO, President’s special staff of economic and development, Firmanzah, asserted that the mining contract renegotiation will be not be decided by the President Susilo Bambang Yudhoyono. He said the strategic policy will be made by the new president elected on July 9 2014.

Freeport mine

“During a cabinet meeting, the president asserted that he would not make any strategic policies, including the mining contract renegotiation, near the end of his terms of office,” Firmanzah toldTempo on Sunday, June 8, 2014.

According to Firmanzah, the renegotiation team and PT Freeport Indonesia are in intensive talks discussing inputs for the next government. He dismissed a rumor saying that the government had agreed to extend the Freeport’s mining contract until 2014.

“The current government will provide considerations in a draft. The next government will make the final decision,” he said.

Freeport Indonesia President Director Rozik B, Soetjipto said the government and Freeport are drafting the memorandum of understanding (MoU), related to renegotiation points to extend the contract until 2041. Rozik said the MoU is drafted to carry out six renegotiation points, including the smelter construction, divestment and the size of mining areas.

“The six points have been agreed, but the MoU has yet been signed,” he said.

Rozik explained that the government will monitor and evaluate the realization of the renegotiation points until 2019. The realization of the six renegotiation points would be taken into account to extend Freeport’s contract in Indonesia.

“To prevent violation of the constitution, the next government will monitor the development,” Rozik said.

source : Tempo


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