03/08/08 07:28Govt warned to be vigilant against Newmont`s maneuvers
Jakarta (ANTARA News) - The Indonesian government should be careful and vigilant in suing PT Newmont Nusa Tenggara (NNT) through international arbitration over the company`s failure to divest part of its equity in accordance with its contract, a legislator said.
"Of course, Newmont will use any means to win the case, including hiring international-class lawyers," Drajat Wibowo, a member of the House of Representatives (DPR)`s commission XI dealing with finance and banking affairs, said here Friday.
The government is taking initial steps to seek international arbitration over Newmont`s failure to divest 10 percent of its shares by February 22, 2008 as stipulated in its contract.
Drajat said the government must be careful because Newmont which has its headquarters in Denver, USA, could resort to all sorts of measures or maneuvers to win the dispute.
Earlier, Energy and Mineral Resources Minister Purnomo Yusgiantoro was reported on behalf of the Indonesia government to have begun a lawsuit through international arbitration after Newmont had ignored repeated reminders of its default.
According to Wibowo, if the government was not careful and had not prepared itself well, it could come under international pressure.
"Our loss in the Karaha Bodas Company (KBC) case should not recur," he said.
In a similar vein, Sayed Junaedy Rizal, chairman of Barisan Suara Muda Indonesia (Indonesian Younger Generation Front), expressed hope the government had prepared itself well to face Newmont in a forum of international arbitration.
Although the government was ready to face international arbitration it should learn from a case involving Newmont in Peru, Sayed said. "It is not impossible that their (Newmont`s) government will pressure Indonesia," he said.
"We, Indonesians, should always be alert. Preparations for taking further steps must be made. We must anticipate the consequences of victory or defeat," Sayed said.
Meanwhile, Drajat also suggested that the government take legal steps in the country by preparing violation demand committed by Newmont in Indonesia.
"Should a violation such as something to do with environment or taxes issue, it could also be brought to domestic court as one of strategies to face Newmont," he said.(*)
