scenarios/pt imn, page-9

Ajax,security of tenure and major corporate sharks are a big risk here in Indonesia. The only company that I think has a secure project is ROL( I don't hold) I am impressed by their choice of the Salim Group as their partners as firstly they are Chinese Indonesians,extremely wealthy and considered here as being "honorable" and trustworthy.Furthermore they know where the "skeletons" of many other large potential predators are buried so few if any will want to mess with them.
Another significant issue facing all miners here now is the new requirement that all companies must either build their own smelters or sell to existing smelters in Indonesia.The problem is that there is insufficient power generation capacity for the new smelters that may be required and projects that were previously considered financially viable won't be if they have to build a power station to power their mine and or smelter.
I think with the rising tide of resource nationalism here what will happen is that foreign companies will either abandon or sell cheaply projects here which they consider no longer viable.The ones who buy them will be wealthy sharks who in time will be able to have the new smelter laws and requirements withdrawn and hey presto they will be sitting on valuable assets which they either on sell or develop to make some serious coin.
The likely winner of the next election for president here will either be Aburizal Bakrie or Prabowo Subianto which is definitely cause for concern.Subianto is the holder of the coal lease currently before international mediation.Remember too that going to court within Indonesia is a risky business as judgements are often determined by who has the best connections and will pay the most money to secure a favorable outcome which is something foreign companies cannot do or they risk breaking laws within their own countries regarding bribery and corruption