JAKARTA (TheInsiderStories) – The National Investment Coordinating Board (BKPM) said it has received proposal from relevant ministry which deals mining sector, requesting a cap of 75 percent ownership for foreign investors in mining exploration company.
“The proposal is new because in the previous investment guideline, Government Regulation No. 39, Year 2014 (on investment negative list), this ownership issue was not regulated,” BKPM said in a statement.
The Head of BKPM Franky Sibarani said that his office will discuss this ownership issue with relevant ministry,namely the Energy and Mineral Resources Ministry (ESDM).
“As for mining exploration, the proposal submitted to BKPM request a limitation of 75 percent (maximum) for foreign investors,” Franky said.
BKPM, in coordination with ministries and government instutions, is currently reviewing the Government Regulation on negative investment list.
The latest investment guideline was issued last year. Normally, the guideline is reviewed at least every two year. However, the Joko Widodo government wants the investment guideline (negative investment list) ruling is reviewed every year.
Franky said earlier that he expects the new ruling on investment guideline to be issued in April next year.
Based on the Law No. 25, Year 2007, on Foreign Investment, foreign investors planning to invest in Indonesia must establish a limited liability (PT) company.
Meanwhile, the Law on Mineral and Coal (UU Minerba) No. 4, Year 2009, regulates that after 5 years of production, the mining company must divest its shares after 5 years with a minimum of 20 percent.
Therefore, there is no regulation that limits the ownership of companies engages in mining exploration as yet. (*)