Jakarta, Aktual.com – In the process of negotiating a contract between PT Freeport (PTFI), the Publish What You Pay (PWYP) Coalition Indonesia urges the government to uphold state sovereignty and comply with the rules of Law Number 4 of 2009 concerning Mineral and Coal Mining and prioritize the interests of the Indonesian people.
PWYP National Coordinator Maryati Abdullah emphasized; The Indonesian government must maintain the state’s authority and must not “submit” to the will of PTFI, which is detrimental to the interests of the state and tends to conflict with the Coal and Mining Law.
According to her, Government Regulation (PP) Number 1 of 2017 concerning the Fourth Amendment to Government Regulation Number 23 of 2010 concerning the Implementation of Mineral and Coal Mining Business Activities followed by Ministerial Regulation (Permen) of Energy and Mineral Resources (ESDM) Number 5 of 2017 concerning Improvement Added Value of Minerals through Domestic Processing and Refining Activities and the Minister of Energy and Mineral Resources Regulation Number 6 of 2017 concerning Procedures and Requirements for Providing Recommendations for the Implementation of Foreign Sales of Mineral Processed and Refined Minerals, clearly contradicts the Minerba Law and shows the powerlessness of the Indonesian government before PTFI.
“This is increasingly evident with the granting of concentrate export permits to PTFI with the provisions of the Temporary Mining License, through the Minister of Energy and Mineral Resources Number 28 of 2017 concerning Amendments to the Minister of Energy and Mineral Resources Number 05 of 2017 concerning Increasing Mineral Added Value through Domestic Mineral Processing and Purification Activities which incidentally contrary to Law number 4 of 2009 concerning Mineral and Coal Mining. The provisions for the issuance of the Temporary Mining License in the revised Ministerial Regulation are increasingly overlapping and contradicting the Minerba Law,” said Maryati, who was received by Aktual.com, Wednesday (12/7).
Not to mention the words; there is an indication of the easing of the export duty value imposed on PTFI from 7.5% to only 5%, contrary to the Minister of Finance Regulation (PMK) Number 13 of 2017 where the calculation is based on the physical progress of the construction of a refining facility (smelter).
Therefore, she stressed that the government’s consistency to comply with the Coal and Mining Law is needed to discuss negotiation points with PTFI, including investment stability such as fiscal provisions, share divestment obligation, continuity of operations, and construction of processing and refining facilities (smelters).
“In the fiscal taxation provisions, for example, the government must remain consistent in fighting for prevailing provisions, which apart from being regulated in statutory provisions, it also opens space for the government to adjust to the tax reform developments that are being pushed. Besides, the demand for prevailing tax is a natural thing for Indonesia, as the home country”, she concluded.