Prabowo: At Least 70% of Benefits From All Indonesian Mining Permits Should Go to the State, With State Control if Needed
Indonesian President Prabowo Subianto said on November 14, in a speech to members of Muhammadiyah, one of Indonesia's largest Islamic organisations, that the state should secure a greater share of the benefits from all mining permits and, if necessary, hold controlling stakes in mining assets. Reuters reported the speech from Jakarta the same day.
"From now on, all mining permits, at least 70% must benefit the state. If necessary, the shares should be state-controlled," Prabowo said. A statement from the presidential palace later clarified that the 70% figure referred to the proceeds from the management of mining permits.
Prabowo added that Indonesia remained open to investors in the mining sector, but that "the profits must predominantly go to the Indonesian people."
Earlier this year, Indonesian media reported, citing Deputy Energy Minister Yuliot Tanjung, that officials had discussed adopting a gross-split scheme for the mineral and coal sector under which 70% of output would go to the government and 30% to the mine operator. Energy Minister Bahlil Lahadalia said in June, however, that the proposal had been dropped following consultations with Prabowo. Prabowo's speech puts the 70% state-share idea back on the table in the form of a public presidential directive; implementing rules have not been announced.
Source: Reuters
Published by GSM · USA (original Chinese edition)
Photo: 图：印度尼西亚总统普拉博沃官方肖像（2024年）。公共领域，经 Wikimedia Commons。 / Photo: Official portrait of Indonesian President Prabowo Subianto (2024). Public domain, via Wikimedia Commons.
