#Government
Power transfer: Lessons learned, optimism on new President
A national survey through Computer-Assisted Self Interviewing (CASI) system, held on September 19-23, 2024, showed a decline in approval rating of outgoing President Joko “Jokowi” Widodo, but exhibited optimistic views on the new State leadership under elected President Prabowo Subianto.
Freeport permit extension,more shares divestment to be executed next year
Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, has hinted that the government plans to grant the special mining business (IUPK) extension to PT Freeport Indonesia and acquire the additional 10 percent divestment share from the mining company early next year.“In shaa Allah [God Willing], the target to secure additional 10 percent shares and grant the permit extension can be completed next year. It depends on the results of Freeport’s communication with us,” Bahlil said on Thursday, October 31, 2024.He cited that he is currently waiting for results of the final negotiation with Freeport after a delay due to a minor fire incidents at its factory.“One their team is settled with the incident, we will start the talking again,” he said.Then President Joko Widodo has signed a government regulation that will allow PT Freeport Indonesia to submit for an extension of their Special Mining Permit (IUPK) after 2041. In exchange of the extension, Freeport MacMoran will divest 10 percent of its share to the Indonesian government.The government issued in May 2024 Government Regulation No. 25/2024, which is a revision to Government Regulation No. 96/2021 on the Implementation of Mineral and Coal Mining Activities.The revised regulation has articles 195A and 195B to complement the previous regulation. It opens up the opportunity for Freeport to apply for a license extension no later than one year before the end of the period of Production Operation activities.Bahlil said the permit extension will be good for Indonesia because currently 50 percent of the company shares already belong to Indonesian government. While the rest of the shares are owned by Freeport McMoran.PTFI signed the Contract of Work (CoW) in 1976 for 30 years and should have ended in 1997. Before the contract expired, PTFI discovered a bigger gold reserve at Grasberg mine. The company then submitted a second contract extension in 1991. The second contract has a clausal on divestment of 51 percent of the company’s shares to the Indonesian government.After a long negotiation, in 2018, Freeport-McMoRan announced that it divested its ownership in PTFI so that Indonesia could own 51 percent shares of the company. In return, the CoW was replaced by a Special Mining Business License (IUPK) with the mining rights to 2041 and that Freeport will build a new smelter.President’s U.S. visitBahlil said that as a technical minister on energy and mineral resources, he has the job to provide data on energy and mining issues for the President in his upcoming international trips in early November, including to the US.However, he said, he did not know wether the president will talk about Freeport issue with the U.S. government or not.
BI Governor highlights lack of Sharia investment liquidity
Governor of the Indonesian Central Bank (BI), Perry Warjiyo, said the US$5 billion issued by the government as green Islamic bonds (Sukuk) is still far from sufficient to meet the needs of safe sharia investment in accordance with Islamic principles in Indonesia.
Danantara, Prabowo’s new investment body to be launched soon
The government is expected to launch the Daya Anagata Nusantara Investment Management Agency (BP Investasi Danantara), a new institution predicted to become a superholding of State-Owned Enterprises (SOEs) whose authority is to integrate separate government assets in ministries and SOEs.
Indonesian Navy holds final preparatory session ahead of MNEK 2025
The Indonesian Navy has invited participating countries of the Multilateral Naval Exercise Komodo (MNEK) 2025 for final preparation of the Asia-Pacific joint naval exercise scheduled for February 2025.
Government prepares rescue measures for Sritex, ensuring operational continuity
The government is devising a series of measures to ensure PT Sri Rejeki Isman (Sritex), Southeast Asia’s largest textile company, able to continue operations despite being declared bankrupt by the Semarang Commercial Court.
Prabowo sets goal for food self-sufficiency by 2028
President Prabowo Subianto has set a target for Indonesia to achieve national food self-sufficiency within his five-year administration, aiming for completion by 2028.
Transmigration not a solution to Papua problems: Activist
An indigenous human rights activist has asked Jakarta to reconsider the transmigration program in Papua region as bringing in non-Papuans to the country’s easternmost region will only create new problems and challenges for the native inhabitants.
AGO denies naming Tom Lembong graft suspect as politically motivated
The Attorney General’s Office (AGO) has dismissed the speculations that the naming of former Trade Minister Tom Lembong as suspect in a corruption case related to sugar imports during his tenure as cabinet minister in 2015-2016 was politically motivated.
Prabowo chairs cabinet meeting on government subsidies
President Prabowo Subianto held a limited meeting with several ministers at the Presidential Palace on Wednesday, October 30, 2024, discussing government subsidies.
Erick Thohir supports use of “Maung” as official vehicle for ministers
Minister of State-Owned Enterprises (SOE) Erick Thohir has expressed his full support for President Prabowo Subianto's plan to use the Maung tactical car, produced by State-owned military vehicle manufacturer PT Pindad, as official vehicle for ministers, deputy ministers, and echelon I officials.
SKK Migas boosts reactivation of idle wells to increase oil & gas production
The Upstream Oil and Gas Regulatory Task Force (SKK Migas) is aggressively pushing for an increase in national oil and gas production by reactivating wells that have long been inactive or idle.