The government rate is not nothing wrong with the plan contract renegotiation in Indonesia's mining sector. Therefore, renegotiation actually equally required by both sides.

"We want a contract tailored to the Mining Law (Mining Minerals and Coal) and they want the talks extended periods of investment," said Coordinating Minister for Economy, Hatta Rajasa, after the coordination meeting at the Office of the Coordinating Ministry of Economic Affairs, Jakarta, Tuesday, July 26, 2011.

Contract renegotiation plan of this work, he added, applies equally to all mining companies in the country. The parties are reminded not to worry about this plan along stick to the principle of mutual respect and honor.

"Therefore, there is no taboo in renegotiation as long as we still honor existing contracts and does not determine unilaterally," said Hatta.

Hatta said that one of the government's discretion to renegotiate the issue of royalties payable to the government mining company. "So far, there is a difference between the provisions contained in the Mining Law with the numbers listed in the contract work," he said.

As is known, the government through the Ministry of Energy and Mineral Resources lists 118 contractors that if there is a cooperation contract (KKKS) which will be reviewed its contracts because it is considered detrimental to the country. Two things will be considered in this renegotiation is on land and royalties.

Seeing this reality, President Susilo Bambang Yudhoyono made ​​request for a renegotiation of mining contracts that are unfair. President's statement refers to the Mining Law No. 4 of 2009.