Minister of State Secretariat, Pratikno
Jakarta, 8 Shaban 1436/26 May 2015 (MINA) – The Indonesian government will fully take over the management of Mahakam block (in East Kalimantan) to Pertamina as well as the management of gold mine in Papua, which is currently controlled by PT Freeport.
” President Joko Widodo reiterated that the government has decided Mahakam block management will be taken over by the government,” said the minister of State Secretariat, Pratikno, Monday. Antara reported as quoted by Mi’raj Islamic News Agency (MINA).
Nowadays Mahakam block is still controlled by the French oil company, Total E & P Indonesie and Inpex Corp. up to 2017.
“While for Freeport, the contract will run out in 2021, the Ministry of Energy will keep bigger ownership of Indonesia gradually,” said Pratikno.
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He said that the mechanism also keep the fiscal and economic benefits to Indonesia from Freeport.
According to Pratikno, the government makes breakthrough of mineral resource management through the Law on Mineral and Coal Mining to regulate the agreement between the states and Freeport.
“The previous agreement form, employment contract will be transformed into a mining license, so that the position of Indonesia as a country is getting stronger,” said Pratikno.
He explained the unilateral termination of the gold
and copper mine agreement in the Papua province would not solve the problem.
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“The unilateral termination will bring new problems, Papua economy will disrupt and people will suffer,” he said, adding that economic issues will impact on political affairs, damaging the investment climate and weaken the position of Indonesia in Asia Pacific region. (T/P008/R03)
Mi’raj Islamic News Agency (MINA)
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