Jakarta, EnergiToday – The Coalition for Publish What You Pay (PWYP) Indonesia urges the Government to uphold the sovereignty of the country, subject to the provisions of Law Number 4 of 2009 concerning Mineral and Coal Mining (Minerba Law) and prioritizing the interests of the Indonesian people, in the process of renegotiating between The Indonesian Government and PT. Freeport Indonesia (PTFI).
The National Coordinator of PWYP Indonesia, Maryati Abdullah, emphasized that the Indonesian Government must maintain the state’s authority and must not “submit” to the interests of PTFI which are detrimental to the state’s interests and tend to conflict with the Minerba Law.
Maryati reminded the issuance of 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 IUPK, 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 IUPK in the revised ESDM Ministerial Regulation are increasingly overlapping and contradicting the Minerba Law”, she said in a written statement received by Energiitoday in Jakarta.
Maryati said, “Not to mention the indication of the easing of the export duty value imposed on PTFI from 7.5% to only 5%, which contradicts the Minister of Finance Regulation (PMK) Number 13 of 2017 where the calculation is based on physical progress. Construction of a refining facility (smelter). Again, PTFI has received extraordinary privileges from the Indonesian Government. “
The Government’s consistency to comply with the Minerba Law is necessary for discussing negotiating points with PTFI, including investment stability such as fiscal provisions, share divestment obligation, continuity of operations, and processing and processing 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 a home country,” explained Maryati.
Maryati added, instead of being tough discussing the obligation to divest shares, the Government must have the courage to take the option not to extend PT FI’s operations in 2021.
“If the sustainability of PTFI’s operations does not lead to the national interest, it would be better, the government is preparing a transitional period for the next 4 (four) years to manage itself through strengthening our BUMNs,” she said. (un)