Sign up | Log in



Home  >>   Daily News  >>   Indonesia News  >>   Investment  >>   Foreign firms don't support Yudhoyono "renegotiations"
NEWS UPDATES Asean Affairs        7  June 2011

Foreign firms don't support Yudhoyono "renegotiations"

Related Stories

May 25, 2011
P&G Plans to Invest US$100 million in Indonesia

May 19, 2011
Indonesian minister may lose office

May 12, 2011
Islamic bank stokes Indonesian growth

May 10, 2011
Indonesia promises incentives for energy investors

May 2, 2011
Indo VP goes after China investments

President Susilo Bambang Yudhoyono's push to renegotiate oil and gas contracts with foreign companies would set a bad precedent, industry players said.

Sammy Hamzah, the vice chairman of the Indonesian Petroleum Association, said the government's plan "would create negative sentiment for oil and gas investment."

The IPA, whose 52 members include oil and gas companies such as Chevron Pacific Indonesia, ConocoPhilips, Total E&P Indonesie, BP Indonesia and state oil and gas company Pertamina, has been vocal in its opposition to government plans to renegotiate contracts and amend the country's oil and gas law.

If the government is determined to renegotiate, Sammy said, it should talk to oil companies and gain investor approval.

"I think the contracts are a very sensitive problem. A bad contract or a one-sided change will scare investors away," said Sammy, who is also the president director of Ephindo, an energy company specializing oil, gas and coal. "Please be careful when talking about the contracts. It should be fair for investors."

Claiming that the country's robust economy should give it more bargaining power, Yudhoyono said last week that the government would review contracts with foreign companies in search of better terms.

Freeport Indonesia, the country's largest gold miner, said it would continue to operate in here despite the increased scrutiny of foreign firms.

"We will continue to honor and abide by the terms of our contract of work. We have successfully operated in Indonesia for over four decades and look forward to many more decades of continued success. We believe our contract is fair to all parties and results in substantial contributions to the government that compare favorably to other major international mineral producing countries," Freeport spokesman Ramdani Sirait said in a statement.

The miner has contributed more than $12 billion to the government in royalties since its current began in December 1991, Ramdani said.

But Tony Wenas, president director of International Nickel Indonesia, said he welcomed the president's proposal.

"It doesn't matter as long as I can get my profit and government also gets their profit," he said.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
  Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below




1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Today's  Stories    7  June  2011 Subsribe Now !
• Airlines face difficult year Subcribe: Asean Affairs Global Magazine
• Foreign firms don't support Yudhoyono "renegotiations" Asean Affairs Premium
• Export increase shows Indo FTAs working
Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

• Petronas: oil in $75-$80 range     
• Singapore reviewing foreign maids exam

• Tata Motors backs Thai tax reform

• Bangkok is top Asian tourist draw

• Foreign trade deficits in Vietnam

Asean Analysis    June  2011

Advertise Your Brand
• Philippines finds success in outsourcing Sponsor Our Events

Asean Stock Watch    June  2011 

• Asean Stock Watch-June 7 p

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent

• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore
• Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline
• Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More


Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2021 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand