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The agreement reached on Thursday between PT Indonesia Asahan Aluminum (Inalum) and the American mining company Freeport-McMoran Inc. (FCX) was widely welcomed by the government, which claimed that the future of PT Freeport Indonesia (PTFI) was now
He added that the agreement leaders signed by FCX and Inalum, which represents the government, were binding and would ensure the stability of PTFI in terms of investments, issues taxes, royalties and operational transitions.
However, legal and economic experts have accused the government of outbidding and proposing to settle all matters relating to future PTFI operations in Papua.
Hikmahanto Juwana, expert in international law from the University of Indonesia (UI), indicated that from a legal point of view
He pointed out that the agreement does not Was not a stock trading agreement, but simply an agreement in principle and had to be followed by another contract. [19] 659002] "It must be thoroughly examined because for lawyers, there is the adage" the devil is in the details, "Hikmahanto said.
He believes that a fait accompli should be in the form of a sales agreement and purchase.
In this case, the US $ 3.5 billion is paid to Anglo-Australian miner Rio Tinto for his 40% interest (PI), which will be converted to PTFI, and $ 350 million to local PT Indocopper miner Investama, another local subsidiary of FCX, which holds a 9.36% stake in PTFI.
Only after payment, Indonesia will officially control 51% of PTFI shares and will become the majority owner of the company that operates the largest gold mine in the world.
Rio Tinto and PTFI were in agreement with Hikmahanto, saying that Thursday's agreement was only one step towards the conclusion of the agreement – which still has the possibility of collapse.
Rio Tinto made it clear in a press release circulated last week that the HoA was a non-binding agreement, and the binding agreement was to be signed by the end of 2018.
"Given the number of terms that remain To be in agreement, there is no certainty that a transaction will be completed, "reads the press release.
At a conference press release on Thursday, Finance Minister Sri Mulyani Indrawati and Minister of Public Enterprises Rini Soemarno badured that binding agreement.
"Unfortunately, the impression that government officials gave regarding the case was overwhelming. He deceived people, who then posted messages [on social media] such as "Thank you, Pak Jokowi" without checking the facts [the deal]"said Drajad Wibowo, senior economist at the Institute for Development of the Economy and finance (Indef).
Drajad, a politician of the National Mandate Party (PAN), who is known to criticize the administration of Jokowi, said the public should know that more important issues have not yet been finalized .
Inalum's finances are not exaggerated because the $ 3.85 billion transaction equals 61% of the company's badets, "he explained. "Besides that Freeport still wants to control the operations of PTFI, even though Indonesia has become the majority owner."
Hikmahanto added that the HoA was in violation of the laws in force, because it gave operational rights to Freeport until 2041.
Under Law No. 4/2009 on mining and coal mining, no further agreement can be reached when a contract of employment (CoW), which Freeport still owns technically, is due. Freeport's CoW will expire in 2021.
However, in February last year, the Ministry of Energy and Mineral Resources issued a Special Mining Permit (IUPK) for Freeport, claiming that the company had agreed to change from CoW to IUPK and agree to waive the benefit of a 50-year extension.
Freeport has previously refused to comply, arguing that an IUPK was not a nailed system because the stipulations, including the tax system, may change depending on a change government regulation.
"The investment stability agreement also contradicts Article 1337 of the Civil Code, which prohibits any agreement that is contrary to existing legislation," Hikmahanto said.
Meanwhile, the non-governmental organization Mining Advocacy Network (Jatam) took a firm stance against the agreement, believing that any deal would have no benefit for the people of Papua [19659022] (function (d, s, id) {
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