INDONESIA: Indonesia Foreign Ownership Limited in Mining Industry

Thursday March 8 2012

It has been reported that a presidential decree limiting Indonesia foreign ownership in Indonesia’s mining industry to 49% was signed on 21 February. The regulation, applicable only to new contracts, stipulates that Indonesia foreign ownership should be no more than 49 percent by the 10th year of production. The law stipulates that after the fifth year of production 20 percent of the ownership must be divested, with the amount gradually reduced over the next five years. The new regulation states its aim is to give “a greater opportunity for Indonesian entities to participate in the mineral and coal-mining business”.

This information will be updated when more details become available.