REPUBLIKA.CO.ID, JAKARTA - Government demands the increasing royalty in around 10 percent from foreign mining companies renegotiating contract with Indonesia.

"Coordinating Minister of Economic Affairs Hatta Rajasa asked for 10 percent royalty. We are working on it," the Minister of Energy and Mineral Resources, Rudi Rubiandini, said on Monday.

Government considers the 10 percent of royalty as adequate to increase state income. Minister Rubiandini expects the companies to provide adequate number of royalty and the issue was an important point discussed in renegotiating contract between government and mining companies. 

The negotiation also discuss on the expanding of the area, prolonging contract, divestment, and so on. The re-negotiation is based on Presidential Decree No. 3/2012.

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