Indonesian official slams mining company “bullsh*t”

The man behind Indonesia’s new mining law dictating foreign companies must hand control of their mines to the Government says companies are talking "bullsh*t" in protesting against it.

According to WAtoday Simon Sembiring, a former Government official and current advisor to Indika Energy, said the law he wrote would protect Indonesia.

He said the new regulation was true to the country’s constitution, which dictates that minerals are owned by the people and not foreign companies.

Sembiring said the new law would end the "honeymoon" of international mining companies in Indonesia.

He told WAtoday Indonesia had the workforce and facilities to mine the resources itself, which would ensure most of the industry’s profits stayed within the country.

The new regulations, announced earlier this month, will force some companies in Indonesia to control a maximum 49 per cent of their projects.

Companies currently owning more than 49 per cent will be forced to sell-down their stake within ten years of first production.

Long-time producers in Indonesia may be exempt from the changes, with the new laws focusing on approvals granted after 2009.

The full extent of the changes are still unknown, with BHP Billiton, Rio Tinto and Newcrest Mining, among other companies, currently holding interests in Indonesia.

To keep up to date with Australian Mining, subscribe to our free email newsletters delivered straight to your inbox. Click here.