Indonesia reviews decision to take over Martabe gold mine
Authorities have said the assets will be transferred to the sovereign wealth fund Danantara Indonesia
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[JAKARTA] Indonesia is reviewing its decision to take over the Martabe gold mine from a company linked to Jardine Matheson, its energy minister said late on Wednesday (Feb 11), after previously announcing it would transfer ownership of the mine to a new state firm.
Indonesia revoked the permits of 28 companies operating in northern Sumatra, including that of the mine operator Agincourt Resources, following accusations of environmental breaches that exacerbated the impact of the floods and landslides that killed at least 1,200 people late last year.
Authorities have said the assets will be transferred to the sovereign wealth fund Danantara Indonesia. Danantara has set up a new company, Perusahaan Mineral Nasional or Perminas, to manage the mine.
Agincourt is part of the conglomerate Astra International. Astra’s majority shareholder is Jardine Matheson.
The business community has been closely following the fate of Martabe, as the takeover happened without any court order. Analysts said the way authorities handle the mine’s future could affect Indonesia’s investment climate.
“The president has directed ... to check again, and if there were no violations, we must restore the rights of the investor,” Energy Minister Bahlil Lahadalia said in a recording posted on the presidential office’s YouTube account.
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“If there were violations, we mete out proportional sanctions,” he added.
“We are doing all of this ... to ensure that investment and legal certainty can occur and to maintain Sumatra’s economic growth,” said Bahlil, adding that a final decision would be made and announced soon.
Agincourt did not immediately respond to a request for comment.
It was not immediately clear if the government would also review its takeover of assets previously owned by other companies. REUTERS
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