Indonesia Orders Foreign Miners to Divest, an Industrial Info Market Brief

Indonesia is mandating that foreign-controlled miners in the country progressively decrease their ownership within 10 years to meet new regulations. Newcrest Mining and PT Vale Indonesia already have expressed their intention to divest in the near future, while miners PT Nusa Halmahera Minerals, PT Kasongan Bumi Kencana, PT Ensbury Kalteng Mining and PT Galuh Kencana are currently in discussions with the government to divest by 2020. Companies are expected to divest their share of active projects from the fifth year of production, and must divest at least 51% by the tenth year.