HOT GENERAL MINING ISSUES RE- DIVESTMENT 51% of PT FREEPORT INDONESIA COMPANY DURING 2014 INDONESIAN PRESIDENTIAL /VICE PRESIDENTIAL CANDIDATE DEBATE

During the recent 2014 Indonesian President/Vice President Debate, several hot General Mining Issues concerning Divestment and Renegotiation of Contract Of Works of General Mining emerged  including the Divestment of 51% of PT Freeport Indonesia Company emerged, where it strongly indicates that the Candidates was questioning whether the President / Vice President Candidates are really going to investigate the issues as to why was the Divestment Clause under the Contract of Work of PT Freeport Indonesia which obligates Divestment of the  51% of the total shares issued by PT Freeport Indonesia Company had not been implemented and executed. 

• As we all know the Contract of Work of PT Freeport Indonesia which was signed by   the Government of Indonesia and PT Freeport Indonesia Company on 30 Desember 1991 (Fifth Generation of COW) which was the renewal of the Contract of Work between Freeport Indonesia Incorporated    and the Government of Indonesia Based on the Decision of the Cabinet Presidium No.82/EK/KEP/4/1967 of 7 April 1967 (First Generation COW).       Based on Article 26 of the Viena Convention - Pacta sunt Servanta it is stipulated that Every Treaty in force is binding upon the parties to it and must be performed by them in good faith. Based on this Article 26 of the Viena Convention of 1969 and pursuant to Article 24 paragraph 2 b Concerning Promotion of National Interest of the Contract of Work of PT Freeport Indonesia dated 30 Desember 1991 it is stipulated that : .

• ......the Company is required to sell or caused to be sold in public offerings on the Jakarta Stock Exchange, or otherwise to Indonesian Nationals, sufficient shares to equal a total of 51% of the issued shares capital of the Company not later than the twentieth anniversary of the date of the signing of this Agreement (the Contract of Work) to the extent requested by the Government of Indonesia to meet the requirements of then existing laws and regulations and to the extent the financial market conditions in Indonesia at the time permit the shares to be sold in an orederly market at a fair price. 

( Note in the Definition under the COW Article 1 item 4  :Company means PT Freeport Indonesia Company, the corporate successor to FII, any approved Corporate successor:and when used in reference to expenditure nade or other action taken under the Prior Contract or the SIPP also means FII ) 


Based on the above International and Indonesian Legal Grounds, the Indonesia President/Vice President Candidate was raising  the issues that investigation must be conducted why was the 51%  Divestment Obligation which must actually takes place one the 20th Anniversary of the Signing of PT Freeport COW dated 30 December 1991 which means on 30 December 2011 ( which is 20 Years after 30 December 1991)  does not occur. Pursuant to Paragraph 2 of Article 24 of the PT Freeport COW  Indonesian Nationals means an Indonesian Citizen, an Indonesian legal entity controlled by Indonesian Citizens, or the Government of the Republic of Indonesia.

• During such 2014 Indonesian President/Vice President Candidate Debate, besides The Contract Of Work of PT Freeport, it was also  questioned about Newmont ' s COW.  We understand that  based on Presidential Regulation No.20 Year 1994, the Divestment  of Foreign Investments  in a general business  was  merely 5% for the Local Indonesian  National Investors and Foreign Investars can remain 95%; However this Presidential Regulation  No.20/1994 was more lower level  than  PT Freeport's COW which ranked higher since such COW signed by the Government of the Republic of Indonesia was also been consulted with the DPR (People's House Representative). Thus, the Legal Binding of  the 51% Divestment obligation under Article 24 of  PT Freeport's COW must be binding and must be performed  by the Parties of the PT Freeport COW  pursuant to Article 26 of the Viena Convention.
  

The above issues were really  hot issues raised  in the 2014 Indonesian President/Vice President Candidate Debate including also the Renegotiating of PT Freeport COW and others COW which was challenged by such 2014 Indonesia President/Vice President  Candidates Debate shown in the Broadcaeted Indonesian Private Television TV One/ Metro TV as well as Berita Satu TV, where pursuant to Article 62 Viena Convention concerning Fundamental change of Circumstances, a Party may request for Renegotiation Long term Contracts Mining if such Fundamental change of circumstances occurs.  In a Desertation  - Renegotiation of Mining Contract in Congo  made by Lukanda Kapwadi  it  shows  that such Article 26 of Viena Conventions as well as the practice of US Law recognizes the regoniatibility of long term contracts for which there exist Yurisprudence of Renegotiation of Long term Mining Contracts in Congo, where Indonesia for sure can learned from such Yurisprudence Renegotiation of Mining Long Term Contracts.

• Whereas concerning 51% Divestment Obligation under Article 24 paragrap 2 b of the PT Freeport COW is more of binding to the  Parties and  must be performed by PT Freeport Indonesia as well as Freeport McMoran Cooper & Gold and by the Government of Indonesia to be implemented 20 Years after the signing Date of PT Freeport COW dated 30 December 1991 which shall be on the 30 December 2011 pursuant to Article 26 Pacta Sun Servanta of the Viena Convention Year 1969. . 

Jakarta, 6 July 2014

Agung Supomo Suleiman

ARE YOU SEEKING INDONESIAN OIL GAS MINING LAWYER ?

If you are seeking Indonesian Oil Gas and General Mining Lawyers you can contact AgsS Law who is an Independent Business Lawyer experiencing as Business Lawyer  practioner in the Oil Gas and  General Mining Business in Indonesia for more than 30 Years. 

We are eager to assist you  in taping the legal aspects of the oil and gas and general mining business  operations in Indonesia.  If you happen to be venturing business in Indonesia you can easily contact him through his email agungsuleiman@gmail.com or his Hand Phone : 081683067. If you are a Law Firm or Lawyer outside of Indonesia and  are eager to search for a Business Lawyer Correspondence in Indonesia, you may just contact Agung where he will be very happy to assist and develop a mutual  beneficial relationship with you.  

• Indonesia is an open country for foreign Investors who are interested to seek business ventures and opportunities in Indonesia. The Indonesians are eager to enter into a mutual beneficial business cooperation with Foreign Investors who are interested to develop its business in Indonesia on a mutual understanding of cross culture between different backgrounds. We still need to learn more from the more advance countries how they can develop and grow to become more aware of the business skills and opportunities in several different area of expertise.                 

  In the Oil and Gas Industries as well as the General Mining Ventures in Indonesia, you may need to understand the back ground philosophy of how the most common Indonesian People are expecting to increase their life quality and standards from the revenue originating from the Natural Resources of Oil and Gas as well  the Hard Minerals founded and located in Indonesia. Beside Oil and Gas Exporters, Indonesia is now a Net Importer of Oil for its domestic use and consumption. Thus, the Government purchase the Product of  Oil  from Sellers outside  of Indonesia based on the market price and sell it to Pertamina as the State Owned Company to be sold to the people in Indonesia on a lower price by subsidizing the difference.

• Relating to the Downstream business prospects,   we understand there are still  significant opportunities for establishing Refinery in Indonesia, however, before funding or putting their monies, Investors wants to firstly have assurances on the feed stock to be proccessed in such Refinery Plant as well as who will purchase the end product of the Crude Oil which are being processed to become  a product.

The Location of the Refinery Plant is also an  important element which had to be considered, which has to be near the Jetty for the Off-Taker to  off-take the Product. Tax Intensive shall  also be a significant element which needs to be  requested by the Investors and granted by the Government of Indonesia to the Refinery Investors.

• A solid prospective business  plan must be made which  can demonstrates why this investment in the Refinery will work. Licenses for running and operating said Refinery Plant must also be explored to make sure that the legality documents and requirement are full filled and completed. Well, those are some few elements that I as a Business Lawyer wanted to high light to the viewers of this Blog.  

Cheers

Agung S.Suleiman 

Jakarta, 4 April 2014 

HOW TO BE A BUSINESS LAWYER

This question is really challenging for professional who are eager to be a Professional Business Lawyer. In my self experience, I can capture the essence of being a Business Lawyer by opening my own shop in the Business Lawyer practice as a self employed Business Lawyer in the sense that we really experienced ourselves becoming a self employed Business Lawyer in the sense of having no fixed income for more than 16 years since 1 of June 1998.

• It is quite an experience where there are no schools teaching us  how to be self - employed,  but to experienced yourself  by becoming someone who dare or is forced by a certain X factor to  jump from a certain fixed situation to become uncertain in terms of your cash flows income.  Your are more independent and flexible in terms of your time schedule, but as a consequence you do not have a certain fixed monthly income as you may enjoyed during your time when we are in the status of an employee have a fixed-monthly income. 

However, there are more wide opportunities that you can venture during your free unemployed status because once your are near the edge of not having enough sufficient cash flows, you are forced to seek and get out of your dreaming venture to face reality that you have to seek Clients or customers who are in need of your legal business expertise so that in return of  rendering your business legal services to your Client,  you are than  being paid an agreed certain legal fees for the legal business services that you have rendered to your Clients.

• Thus, there is no other alternative and option than to emerge and pulled out your ability to seek and search Clients through your business networks to be able to generate legal fee revenue. But the Legal Fees are actually a By-Product, where we firstly have to seek Clients through our business networks  and provide them with our professional legal business services in a perfect, professional, timely, efficient way to meet our Clients high expectation in receiving our legal business support services to protect our Clients Business Interests, investment, and business operations in achieving their business targets and goals.   

There is no instant short cut results, but it needs courage, tough decisions, down to earth solutions to help your  Clients needs in achieving their business goals and targets, business plans in their ventures in Indonesia. You have to really learn from your falls and ups, smart learning process, and also by admitting your weakness so that you must learn, listen and observe from others who succeed and are able to  rise up after their falls and never give up to pursue your missions, visions  in actualizing your potential inner strength to contribute value added to your business society and community. 

• You must established a certain character to differentiate your unique professional capability and maintain your business networks and links to expand and penetrate the market in exposing your professional capability  as a Business Lawyer. Before you can convince others you must firstly identify who your really are and what are your wants, needs, visions, goals, dreams, and down to earth reality facts that you can be an added value to your closest business society and community.  

So, we have to increase our awareness to become more smarter and learn from our mistakes, to overcome our own obstacles which had blocked our potential capability to develop and increase our self confidence and self esteem. Well, having said the above, this article is actually to strengthen my self to be more aware and conscious of what do we actually want to do to contribute benefits to others.

Jakarta, November 1, 2013 revised 24 June 1014

Agung S.Suleiman          

HI THERE IT's ALREADY MID MONTH OF OCTOBER 2013

Amazing isn't it we do not realize that it is already the 22nd of October 2013. Thanks GOD that we still survive and are alive. How is Business at your end? We hope that everything is ok at your end. In Indonesia the weather is quite hot and sometimes it's raining. If we look at the construction development in Jakarta it appears that there are many new high rise buildings being constructed. The streets in our Area which is near Fatmawati Street are being fast renovated and expanded to become  3 Row Ways, due to the preparations of the MRT or Mono Rail which are planned to be constructed from Lebak Bulus to Hotel Indonesia in Jakarta.

• The Governor of Jakarta seems to be very serious and consistent in implementing the development of the streets in Jakarta particularly in Fatmawati Street where I lived, where it only took around 1 (one) month to complete such renovation of the 3 Row Ways, where they conducted the construction at night, which according to my knowledge it only occurs during the Era of  Governor Jokowi and Ahok, which is similar to my personal experience observing road construction when I was in Holland. 

As you are aware Jakarta is the Capital City of Indonesia, by which it shall be the barometer and sample of how the upfront face of Indonesia will be exposed in the coming days and future  to come, after Jokowi  for 1(one)  Year had exercised professionally  as how Public Servants must actually performed as Public Servants in Indonesia.  

• For business actors and players these positive attitude shown by the Governor of Jakarta shall be a positive sign to attract investors establishing their offices in Jakarta. Green City Parks, water drainage, river  functions and additional volume of Bus Ways are being focused to be handled and tackled by the Governor of Jakarta during this 1st Year of Public Services by this Public Servant. We as the inhabitants in Jakarta can really feel the seriousness of handling the complicated matters faced by Jakarta by Governor  Jokowi. 

We as Business Lawyer feels having  a certain level degree of comfort  relating to  "Legal Certainty" due to the Strong and Solid Leadership shown by these 2 Leaders, where they demonstrated to be  sincere and can be trusted by the people in solving and handling the overwhelming comprehensive and complicated matters faced by the Capital City of Jakarta. 

• I think these are some real and actual feelings that we felt as inhabitants in Jakarta.

Jakarta, 22 October 2013

Agung Supomo.Suleiman           

 .      

Indonesia IS REALLY Experiencing New Era

Yes, Indonesia is really experiencing New Era in its journey as a Nation in this Democracy and Transparency Era. In Indonesia you can notice that the Indonesian News Papers and Electronic Media are very freely independent and nobody is in exception to be criticized including the highest level position in the Executive, Judicial  as s well as in the Legislative; Particularly facing the 1914 Presidential and Legislative.

•  We cannot imagine that this could happen in Indonesia during the Soeharto Regime Power Era before 1998; Indonesia is actually still learning how to become a well integrated, Good Governance, transparency since in the Political Level, most of the Parties are still  using  monies influence  to attract the people in their campaign to seek voters. Indonesia is an Archipelago consisting of thousands of Islands scattered from Sumatra to Papua, where in reality you need to have significant amount of  funds and monies or sponsors to be able to capture the Parties Voters in these wide Spread Archipelagos of Indonesia. 

Most of the officials who are being dragged to the Court being alleged of conducting Corruptions are related to the High Level Legislative and Head of the Region Elections where it indicates that there occurs collaboration between Private Companies who had sponsored funds for the Political Figures which in return these Private Companies appears to be expecting to win tenders in the Government Projects, which are demonstrated in the various Corruption Cases being  handled aggressively by the KPK (Komite Pemberantasan Korupsi) or roughly translated the Corruption Elimination Committee.  

• Several significant High Level Public Figures are being jailed and put to prison in the process of this  Investigation by KPK, which are being highlighted by the Indonesian Journalist in the Local TV Media News in Indonesia. We can view and observe this as a positive legal  trend process against corruption in Indonesia during this Transparency Era, where  nobody is in exception to this new Era Trend occurring in Indonesia. At least there is definitely High Hopes experienced by us  for a better future in Indonesia in the coming years to come.

Talk shows in the TV Media are occupied with these  breaking news relating to Corruption Cases which are being discussed, analyzed and debated by the Expertise from different level of professions.There are  no censorship upon what are being discussed in the TV Media in Indonesia relating to this corruptions cases involving the High Level Alleged  Officers. Thus, Indonesia is currently really experiencing a new Era in its journey as a Nation to become more Democracy, Transparency and Good Corporate Governance.          

Jakarta, 21 October 2013

Agung S.Suleiman
     

             

LEARN SMART FROM OTHERS TO DEVELOP GROWTH

Yes, as a Business Lawyer we have to learn from others particularly, how to increase our professional qualifications and capability to catch up with the International Business Professional standards so that we can satisfy the legal curiosity of our Foreign International Clients who are conducting business in Indonesia. If we can meet the high expectation of our Client in handling the legal aspects to protect their business interest particularly to protect their investments which they have pursued to achieve their business goals and targets, we might be rewarded by our International Clients by achieving good and qualified team work and partnership with our Clients. 

•   Our Law Firm now called SACO Law Firm (Suleiman Agung & Co)  is striving to survive and as a professional Law Firm, and we are really eager to establish and maintain good professional relation with Foreign International Law Firms. For more than 15 (fifteen) Years since 1st June 1998, our Law Firm had been practicing Business Law within the Business Community in Indonesia. The Founder and partner of this Law Firm had experienced serving International Foreign Clients as well as Local Indonesia Clients. Based on such depth experienced, we believe and is confident  that we really understand the wants and needs of our Clients to ensure legal certainty to enable them to develop sustainable business venture in Indonesia.

We must be aware that the world is flat in the sense that all countries are dependent on each other including maintaining good understanding between the Various Business Players and Professionals  in all level of Business Society. Besides mastering the English language every Business Lawyer have to always learn the effective business communication particularly how to talk the same business language with your Business Lawyer skills in passing the message of legals aspects and legal exposures which is understood by every level of professionals with your Clients including the management and shareholders level.

• As a Business Lawyer,  we have to learn from the hard way and by experiencing also the difficulties and obstacles in our cash flows and learn smart from our ups and downs in running and managing our Business Law Firm and we must also establish high level of trust and comfort to our Clients. Indonesia is growing and striving hard  to be at the same level of attitude with other advance countries who had reached a certain level of quality and service which can be accepted by International Standards. We can observe and watch this from our day to day experience in Indonesia  where one of the Good samples which are shown by the New 1 Year Governor of Jakarta, where the Governor and the Vice Governor of Jakarta are really doing professional tasks including how to get the MRT Project done to cope with the Terrible Traffic Jam and crowd in Jakarta and the hard work to cope and handle the Floods in Jakarta.      

So we really must learn from our advance neighbor countries and learn smart from them to develop growth in this open transparant era.

That's all folks for this episode snapshots

Jakarta, 18th October 2013

Agung S.Suleiman 

HUKUM UNIVERSAL SABAR TANGGUH TAK PUTUS ASA DARI RAHMAT ALLAH BERSYUKUR

Yah kita sebagai manusia Harus Sabar, tangguh,  tidak boleh putus asa dengan Rahmat ALLAH BERSYUKUR kepada ALLAH. 

• Rejeki sudah ada Jatah dan takaran dari ALLAH bagi kita selama kita masih diberi kesempatan hidup, namun syaratnya agar dapat rejeki Berkah, adalah Jujur, Mengikuti Perintah ALLAH dan Menjauhi Larangan ALLAH, berdoa, berusaha keras dengan banyak mau belajar dari pengalaman jatuh bangun diri kita maupun orang lain termasuk wadah kita dan wadahnya orang lain, dan berusaha untuk juga kerja cakap dengan tidak mengulang-ngulang  kesalahan yang kita lakukan. 

• Penulis merasakan bahwa  meskipun sudah berumur 61 tahun menuju 62 Tahun, namun jika ALLAH masih memberikan kesempatan untuk hidup didunia ini, dan jika sudah bersusah dengan semaksimal mungkin, ternyata manusia ada takaran rejeki sesuai dengan kemampuan dan kegigihan yang dimiliki orang tersebut, dimana untuk Penulis adalah  memberikan "Brand Name" pada wadah Penulis dengan nama Suleiman Agung & Co yang Penulis singkat SACO LAW FIRM;

Tidak mudah memang membangun dan memelihara serta mempertahankan untuk dapat Survive, selama lebih dari 15 Tahun ini dengan ganti Partner maupun berganti keluar masuk pegawai. Namun karena Penulis mulai dari "Nol alias Scratch" istilah bahwa Inggrisnya, pada tanggal 1 Juni 1998,  Penulis syukur ALHAMDULILLAH telah banyak mengalami jatuh dan bangun termasuk Cash Flow dari Wadah ini yang tentunya berpengaruh kepada Cash Flow dapur pribadi rumah tangga; 

• Namun ada "Hal penting yang Penulis alami, setelah dicampur antar pengalaman pengalaman perjalanan hidup Pribadi selama 61 tahun lebih dengan 15 Tahun menjalankan Wadah Suleiman Agung & Co yang Penulis singkat SACO LAW FIRM adalah,  terasa ada ke"Yakinan Kuat" yang dirasakan oleh Penulis bahwa  ada hukum Universal yang dibuat oleh ALLAH Sang Maha Pencipta, khususnya disebabkan  Penulis sudah diizinkan oleh ALLAH Sang Maha Pencipta untuk selama  15 Tahun untuk dapat survive, dengan cara Self Employed dengan pengertian, tidak ada Fixed - Income atau gajih, melainkan berjuang dan berusaha mengharapkan rejeki Cash-In meraih Karunia ALLAH dari Proyek memberikan Jasa Hukum melalui Wadah Suleiman Agung & Co yang Penulis singkat SACO LAW FIRM,  maka  banyak ilmu dan pelajaran yang dapat Penulis petik;

Ilmu dan Pelajaran Penting ini antara lain yang penting adalah bahwa jika kita kaitkan dengan Keimanan dan Kepercayaan atau Faith, bahwa ada suatu Dzat Maha Kuasa diluar diri kita yang telah menciptakan ALAM semesta ini termasuk Bumi yang kita tinggali terasa Sangat Kuat  ada "Hukum Universal" yang bersumber dari Kitab Suci yang diturunkan ALLAH,  melalui para Nabi  dan para Utusan Rasul dari ALLAH bahwa ALLAH akan memberikan cobaan kekeringan - tandus - dimana dalam hal menjalankan wadah adalah "Masa Sudah Sidekit atau Minimnya Cash Flow, serta disisi lain Rahmat dan Berkat berupa Rejeki Karunia ALLAH berupa Cash - In yang akan datang setelah kita benar2 kepepet, yang datangnya seringkali dari Arah - atau Klien yang kita tidak- sangka2, dan biasanya tepat dengan Jumlah Uang yang kita benar2 Butuhkan untuk dapat menyirami kekeringan Cash Flow tersebut;

• Jika hal ini hanya terjadi sekali dua kali maka mungkin kita menyebutnya Kebetulan, namun jika hal ini seringkali kita alami, maka harusnya ini membuktikan : "Tidak Ada Faktor Kebetulan" melainkan haruslah ada faktor Hukum Universal dari suatu Sistem Mechanisme Jatuh bangun dala kehidupan didunia ini,  yang memang telah didesign dan dibuat oleh ALLAH, dimana kita harus pandai belajar menimba ilmu ini, dan mengamati, perjalanan hidup kita agar kita In Sya ALLAH dapat menjadi manusia yang lebih Bijak dan Cakap dan Pandai Bersyukur untuk tidak merasa Sombong jika berada di"Atas", dan tidak putus asa dikala kita berada "dibawah. 

Sekian dahulu tulisan Penulis ini, pagi setelah kemarin bekerja dan rapat sampai malam dengan Klien .....

   Jakarta 17, Juli 2013 

Agung S.Suleiman