The Indonesian government mulls to require foreign-controlled mining firms to sell at least 20 percent of their shares to the central government, regional government, state enterprises or domestic private companies, a senior government official said in Jakarda on Monday.
Bambang Gatot Ariyon, the director for coal and mineral utilization at the Energy and Mineral Resources Ministry said that such an obligation will be stipulated in a presidential decree (PP) being discussed by the government at the moment.
Bambang said that the decree would oblige those mining firms to sell their shares to domestic investors after five years of operation.
"After series of discussions, we think 20 percent is the most acceptable figure for the divestment requirement," the Jakarta Post daily Monday quoted Bambang during a discussion held here as saying.
He added that the selling of 20 percent of the mining firms' shares should be completed within four years.
It means that they have to complete the share sale to domestic shareholders nine years after their operation.
Source: Xinhua
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