Indonesian export issues progressing
Freeport Indonesia — is a leading company in mining extraction in the country. They plan to change employment contracts. The document will soon be replaced by a special mining permit. But the full concept of the newly introduced document is still being considered.
It is known that Freeport Indonesia is part of the United States of America Freeport-McMoRan. With the official announcement on behalf of the enterprise was made by the representative of the company Reese of Pratama. He stated that he needed confirmation that the investment situation stabiliziruemost with the change of contract.
Pratima noticed that a lot of things depends on the resolution. But authorities still have not commented on the mechanism of action of the document. This means that soon the warehouse will be overflowing with products. This happens because of lost export opportunities of products produced by the company.
At the same time the representative of the above company from Indonesia said that they do not lose hope. People believe that in the near future the government will be able to explain everything. And our time, however, the company does not have a normal situation for investment.
In 2016, the government of Indonesia again revised the Ordinance on the coal and mineral industry. The document gives metallurgists a permit for the export of manufactured products.
This was the reason that the steel companies are obliged to abandon standardized employment contracts. They need to get a dedicated mining permit. This will give companies permission to export their products. In the future such orders will be reviewed by the authorities every six months.
The situation with such laws immediately led to a number of specific problems for Freeport Indonesia. They lost some opportunity to export their products that became the reason of emergence of problems of an economic type. An example of problems has emerged the threat of job cuts.
The reaction of management to such statements, the company is still unknown. But with a high probability in the near future the issue of permits is exhausted. Otherwise other companies will also begin the dispute with the state. And foreign branches and withdraw all units from Indonesia.