Indonesia: Decreased foreign-ownership ceiling in mining
According to consistent press reports, the government of Indonesia has decreased its cap on foreign ownership in the mining sector by 6 March 2012.
Under the new regulation, foreign investors may only own up to 49 percent of a mining company. Foreign companies currently holding higher stakes shall reduce them accordingly within the next 10 years. Prior to the change, foreign investors were allowed to hold up to 80 percent of a mining company in Indonesia.
Any Evidence-Based Deliberation:
|Is there anything in the public record to suggest that evidence of the effectiveness of the proposed measure was considered during official deliberations?|
|Is there any evidence that alternatives to the proposed measure were considered?|
|Is there anything in the public record that suggests that empirical evidence informed the comparison across the alternatives available to government?|
|Was such evidence identified?|
|Is such evidence publicly available?|
|Did the official decision-maker in question provide an explanation as to why a chosen measure was favoured over alternatives?|
|Is there any evidence to suggest that potentially affected trading partners were consulted before the measures were taken?|
|Is there any evidence that safeguards have been put in place to ensure that implementation of the initiative is transparent and non-discriminatory?|
|Did the government state its intention to review the measure within one year of implementation?|
Date of inception: 6 Mar 2012
GTA Evaluation: Red
Financial Times. (7 March 2012). Indonesia limits foreign ownership of mines. Available at http://www.ft.com/intl/cms/s/0/e9d9e570-684f-11e1-a6cc-00144feabdc0.html
Wall Street Journal. (7 March 2012). Indonesia to Pare Foreign Investors' Mining Stakes. Available at http://online.wsj.com/article/SB1000142405297020396120457726715421923003...