REPUBLIKA.CO.ID, JAKARTA – The Civil Society Coalition incorporated in Publish What You Pay (PWYP) Indonesia urges the Government to immediately complete the renegotiation process of the Mineral and Coal Mining Contract of Work in a transparent and accountable manner. PWYP National Coordinator, Maryati Abdullah explained that the process of renegotiating mining contracts of work was one of the consequences of the implementation of Law No. 4 of 2009 concerning Minerals and Coal.

“The renegotiation mainly involves 6 strategic issues: the size of the work area; continuation of mining operations; state revenue; processing and refining obligations; divestment readiness; the obligation to use domestic workers, mining goods and services, “explained Maryati, Sunday (15/2).

In accordance with the transitional provisions of Law No. 4/2009, Maryati explained that the adjustment must be made within a maximum of 1 (one) year, except for the purification obligation which is given a maximum of 5 (five) years from the enactment of the regulation. Maryati assessed that the government must transparently convey to the public the progress of the renegotiation results, including explaining the reasons and constraints why the target was not achieved.

“One of the renegotiation processes that are in the public spotlight today is PT. Freeport Indonesia, “said Maryati. The company that holds the contract of work which will expire in 2021 has just received an extension of the export permit for the concentrate, although it does not show a significant obligation in fulfilling the smelter construction obligations as contained in the MOU that ends on January 24, 2015.

“The government must also pay attention to the concerns of the Regional Government related to the desire that the smelter factory of PT. Freeport was built in Papua, “added Maryati.