Govt Asked to Set Requirements for Freeport`s Contract Extension
6 December 2015 15:30 WIB
TEMPO.CO, Jakarta - Indonesia Resources Studies (IRES) director Marwan Batubara said that the government must put their best effort to gain maximum benefit from PT Freeport Indonesia.
“There are several important things worth to fight for, namely income tax, royalty, retribution, dividend and management,” Marwan said on Saturday, December 5, 2015.
According to Marwan, the government must set requirements to be fulfilled by Freeport before extending its contract, since the tax revenue missed the target.
“Currently the government needs income that can be gained from royalties,” Marwan added.
Indonesian Mining Business Association (Apemindo) executive director Ladjiman Damanik earlier complained about low royalties paid by Freeport to the government. According to Ladjiman, Freeport pays 1 percent of royalty, while Aneka Tambang pays 3.7 percent.
Ladjiman questioned government’s policy and called on the government to increase Freeport’s royalty.
“Therefore, the government can receive higher income,” he said.
Government Regulation Number 77/2014 sets the earliest term to extend a mineral and coal contract in two years before it ends and six month at the latest. The revision of the regulation will be included in the economic policy package initiated by the Energy and Mineral Resources Ministry.
The amendment of the bill extended the metal mineral contract period to ten years at maximum and two years at minimum. Meanwhile, the earliest contract extension for non-metal mineral would be set at five years and two years at the latest.
MAWARDAH NUR HANIFIYANI