Tag Archives: Bolivia

Dahlan Iskan: renegotiation of mining contracts best way

Minister for State Owned Enterprises (SOEs) Dahlan Iskan assess renegotiation of mining contracts in Indonesia is the best way to face a multitude of foreign investment in Indonesia.

“It should be recognized, many large mines in Indonesia are foreign owned. However, the contract has been running for 20-30 years. Then what to do? What can be taken or left alone?,” He said in Semarang on Saturday.

It is expressed after giving a public lecture entitled “The Mastery of Science and Technology for Humanity Nation and Poverty Alleviation” held at the University of Diponegoro Semarang.

According to him, Indonesia will be regarded as a primitive nation if the mines seized from foreign investors for having violated the contract, did not obey the law, and breaking the agreement.

“If you do like it, seize the mines, Indonesia would have ostracized the world as it is considered as a primitive nation, not subject to the legal order. However, if allowed I also do not agree,” he said.

He said that during this time many people who want Indonesia as Bolivia’s mining nationalize all assets, such as North Korea independent, or prohibiting the Myanmar foreign entry.

However, he said, those who want Indonesia such as Bolivia, North Korea, or Myanmar would not feel the “suffering” experienced by the country, which lives in poverty.

Therefore, Dahlan said that the best that can be taken to address the issue is to renegotiate mining contracts that had been controlled by foreign investors.

“Let’s get them (foreign investors, ed.) To reason, considering the times have changed, especially the investment they have long returned to renegotiate mining contracts,” he said.

He pointed out that Indonesia has been exporting gas to China at a very cheap price, about three dollars U.S. / mmbtu (million metric British thermal units), whereas the repurchase price.

“Do we want to blame the government policy then? According to me, the best solution is to renegotiate, there may be a rise in half-cent or one cent is tolerable,”

International Business Issues – Bolivia and Evo Morales

When the President of Bolivia, Evo Morales, nationalized a few of the country’s very large mines, he threw out the foreign operators who had put in all the infrastructure, and invested all the money in digging up those resources. These foreign investment companies, as well as the companies that were running the operations lost everything, and they were paying royalties and taxes to the Bolivian government under contract.

Evo Morales claimed in a speech that those resources belonged to the Bolivian people, specifically the Native Bolivian People, and native Indians of that land. Likewise, he said that the money that was generated from the minerals that were taken from those mines belongs to the Bolivian people, and the money generated should be used to help them live better lives, not to the profiteers of foreign companies. Continue reading