Indonesia ready to face Churchill lawsuit challenge

REPUBLIKA.CO.ID, JAKARTA – Attorney General Office (AGO) of Indonesia is ready to represent as District Attorney on the lawsuit of UK’s mining company, Churchill Mining Plc, towards Indonesian government through International Centre for Settlement of Investment Disputes in Singapore. Attorney General Basrief Arief on Friday said he was ready, but he still waited for mandate of attorney from the government.

Meanwhile, Junior Attorney General for Civil and State Administration Cases (Jamdatun), ST Burhanudin, refused to give any comment over the case. The UK’s mining company files a lawsuit over Indonesian government in the amount of two billion USD over the revocation of license of coal mining in East Kutai, East Kalimantan, conducted by distric head of Kutai Timur, Isran Noor.

Noor said that there had never been a mining company named Churchill Mining Plc. investing in his region. He further claimed the mining company had never been registered with the mining service of Kutai Timur.

Noor admitted he only learnt about Churchill in 2009 after the company announced that it had invested in a coal mining project at Kutai Timur. Based on data of the Kutai Timur district administration, Churchill only holds a 75 percent stake in coal mining group Ridlatama.

Noor said that a foreign company may not operate using a mining business license, but must use a working contract or a coal mining contract agreement, before commencing operations. Hence, the government of Kutai Timur, revoked four business licenses from Ridlatama.

SBY's hard stance

Earlier, President Susilo Bambang Yudhoyono (SBY) has called for a thorough preparation while dealing with the lawsuit, saying Indonesia must win in the legal dispute. "I hope we win because I do not want MNCs (multi-national companies) to do as they please and misusing their international powers to suppress developing countries like Indonesia," he said at the opening of a cabinet meeting on Thursday.

SBY who had taken a hard stance on the case, further said, "So long as we believe we are right, we, in this case -- the district heads of Kutai Timur, are obligated to defend dignity, truth and justice. This is the principle. I will see the details of the real case and assure you of a win in the court."