REPUBLIKA.CO.ID, JAKARTA - Several mining companies are ready to re-sign the renegotiating mining contracts, according to the Director General of Mineral and Coal in the Ministry of Energy and Mineral Resources Thamrin Sihite. However, Freeport Indonesia so far has not reached the agreement of renegotiation. 

Renegotiation comes after President Susilo Bambang Yudhoyono (SBY) criticized some unfairness in working contracts of mining companies. SBY said that the past contracts were unfair and disadvantaged Indonesia and its people. While the energy sector, he said, was vital to the welfare of Indonesia's population so that government must have the right strategy and policies in the sector.

About nine holders of Coal Mining Concession Work Agreement (PKP2B) and five holders of Kontrak Karya (KK), Sihite said, were ready to sign the renegotiating contract. Government still discusses a number of important points with Freeport, such as its area in Papua.

Sihite admitted that Freeport promised to adjust the royalty above one percent. Yet, the contract has not been signed.

Several foreign mining companies claimed that their working contract gave the advantage for Indonesia. The Executive Director of Freeport Indonesia Rozik Soetjipto said the profit was seen from the total of state income and tax.

The Spokesman of Freeport Indonesia Ramdhani Sirait added that Indonesian government had already received appropriate portion. Renegotiation with Freeport includes royalty, the building of smelter, and divestment of foreign private stock. Government seeks for the increasing of the current royalty.

The Vice Minister of Energy and Mineral Resources Rudi Rubiandini said government committed to obtain fairer working contract. Government asks the foreign companies to increase the royalty, state income, and return some of the area. "We try to protect from over exploitation," he said.

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