2. CANBERRA
VIENTIANE
JAKARTA
JAKARTA
JAKARTA
SYDNEY
LEGIAN
29/09/ 10/05/ 25/06/ 19/02/ 02/11/ 20/04/ 19/11/
2005 2007 2007 2009 2010 2011 2011
TIF Expert
Indonesian Initial IA-
Bilateral Groups Final report
President CEPA Joint study
Trade and reported of TIF
Meeting of and three-year Indonesian
Investment back to the Expert
the Australian beef - Australian
Framework Trade Groups
bilateral PM project business
(TIF) Ministers, submitted
TIF Expert announce launched, (KADIN –
signed by joint to the
Groups. commence KADIN – ACCI) an-
both Trade feasibility Trade
-ment of ACCI MOU nounced.
Ministers. study to Ministers.
nego- signed.
follow.
tiations.
2

3. 3

4. Australia is an
Indonesia is outward-looking
basically an country, on the
inward-looking lookout for
country, preoccu opportunities
pied with itself. outside its
borders.
4

5. 1. The economy shall be 2. Sectors of production
organized as a common that are important for the
endeavor based upon the country and affect the life
principles of the family of the People shall be
system controlled by the State
3. The land, the waters and
the natural riches
contained therein shall be
controlled by the State and
exploited to the greatest
benefit of the people
5

6. POLITICAL
Governments
WILL
Public Opinion
Political Attitude
Perception of Good
of Community
GOAL:
Policies and
GOOD OF Strategies
COMMUNITY
Economic, Social
and Political
Circumstances
“Negotiating Mining Agreements: Past, Present and Future Trends,” Danièle Barberis, 1998 6

7. The economic system and general state of the national economy
Domestic political factors, such as the position of different
political parties with regard to foreign investments in general and
foreign mining investments in particular
Government priorities and objectives
Internal pressure originating from public opinion and
expectations
National ideology and/or philosophy
The personality of those in power
The history of previous dealings with transnational mining
companies (TMCs)
The political system
“Negotiating Mining Agreements: Past, Present and Future Trends,” Danièle Barberis, 1998 7

8. Prioritize utilization
of coal and minerals
for domestic needs
Preserve
environment Provide certainty
through and transparency
management and in mining activities
monitoring
Pursue added value
from commodities Improve
(processing, local supervision and
content, employmen sustenance
t, CSR)
Encourage
investment and
state revenues (Workshop on Mining and Reporting of Mineral
and Coal Resources, Directorate General of
Minerals and Coal, Jakarta, 1 March 2012)

9. Government MEMR
Regulation Regulation
No. 24/2012 No. 7/2012 on
increased Increase of
divestment Added Value
obligation to
51% from
previously
20%
Revision to Government The suddenness of its
Regulation No. 23/2010 implementation date (May 2012)
caught many by surprise
9

10. Government MEMR
Regulation Regulation
No. 24/2012 No. 7/2012 on
increased Increase of
divestment Added Value
obligation to
51% from
previously
20%
• Enable mining companies to • Negotiate with MEMR deferral
divest in stock market of submission date of plan
• Find suitable strategic partners • Coal and gold mines largely
in the longer term unaffected anyway
10

11. 11
11

12. A viable
Both
agreement
governments
cannot be one-
need to be
sided  what
involved
can Australia give
actively
in return
Institutions on
both sides must
Capacity building
be involved
may facilitate in
(ACCI/AusIMM
finding common
and KADIN/
ground
PERHAPI/ IMA,
ICMA, IAGI)
12

13. IA – CEPA still has a long way to go
There is room for the minerals sector in
IA – CEPA but work needs to be done
Multi-stakeholder involvement and
reciprocity absolute prerequisites

14. Menara Karya, 10th Floor Suite H
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Jakarta 12950 – INDONESIA
T: +6221 5794 4694
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