Prabowo Wants the State to Take 70% of Mining Benefits in Indonesia
The Indonesian president said all mining permits must secure at least 70% of proceeds for the state, and floated state-controlled stakes in mining assets.
JAKARTA, Nov 14 (Reuters) - Indonesian President Prabowo Subianto said on Saturday that the state should secure a greater share of benefits from all mining permits and, if necessary, hold controlling stakes in mining assets.
• "From now on, all mining permits, at least 70% must benefit the state. If necessary, the shares should be state-controlled," he said in a speech to members of one of Indonesia's largest Islamic groups, Muhammadiyah
• A statement from the presidential palace said the 70% stipulated by the president referred to the proceeds from management of mining permits
• Prabowo added in his speech that Indonesia was open to investors in the mining sector but "the profits must predominantly go to the Indonesian people"
• Earlier this year, several local media outlets reported, citing Deputy Energy Minister Yuliot Tanjung, that officials had discussed having the mineral and coal sector adopt a gross-split scheme under which 70% of output would go to the government and 30% to the mine operator
• However, Energy Minister Bahlil Lahadalia later said in June that the proposal had been dropped following consultations with Prabowo
(Reporting by Stefanno Sulaiman)
