ANNOUNCEMENT 03 Mar 2011

In March 2011, the government of Indonesia announced altered domestic business conditions for foreign investors.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 03 Mar 2011 | Removal date: open ended
Still in force

FDI: Treatment and operations, nes

On March 3, 2011, a ruling issued by the Indonesian justice revoked the mining licences of Churchill Mining Plc for the exploitation of the East Kutai Coal Site.
Churchill acquired those mining licences through the acquisition of 75% of the Indonesian Ridlatama company. Before this deal, the licences were the property of Nusantara, another Indonesian company. In 2008, after having invested USD 50 million, Churchill announced that it had discovered large coal reserves whose net present value amounted USD 1.8 billion. After this, local officials extended the previous licences of Nusantara, leading to a geographic overlap between Nusantara's licences and Ridlatama's licences (i.e. Churchill's licences). In the end, the mining licences of Churchill had been revoked in March 2011 by the local Samarinda Administrative Tribunal.
After having been dismissed by the Indonesian justice---the Administrative High Court in Jakarta upheld the decision of the local tribunal on August 19, 2011 and an appeal from Churchill was further dismissed by the Supreme Court of Indonesia in June 2012)---Churchill brought the case to the International Centre for Settlement of Investment Disputes (ICSID). The case has been registered on December 26, 2012 and the tribunal has been constituted on January 22, 2013.

AFFECTED SECTORS

 
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AFFECTED PRODUCTS

 
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