“Freeport and ISDS Law Suit Threat”
- BACKGROUND AND CURRENT SITUATION
Freeport-McMoRan Inc. has operated mining exploitation in Indonesia since the 67’s. Freeport investment is considered as the first foreign investment into Indonesia. Civil relations of the Government of Indonesia and Freeport is formed in Contact of Work (CoW) – which agreed upon before enactment of Mining Law (Law 11/1967). Freeport got first extension CoW in December 1991 and is eligible CoW extension twice in ten years period (20 years).
However, the reform of cooperation occured after the issuance of Law No. 4 of 2009 on Mineral and Coal Mining (Mining Law). Mining Law requires the management of mineral and coal is no longer in the form of a contract, but permission. Nevertheless Mining Law still recognizes the existence of CoW (that existed before the new law) until the expiration of CoW, under the condition that the existing CoW shall be adjusted and revised into licensing schemes, including the CoW of Freeport.