Nationalization Of Share By Divestment In Indonesia

Production amount based on technical documents that have been approved;

Financial assumptions include the price in accordance with the reference mineral price or reference coal price, price escalation based on internationally recognized sources, cost escalation based on company historical data, state revenue using tariffs by the provisions of laws and regulations, or other regulated provisions. in the contract, the average exchange rate (middle rate) of bank Indonesia at the time the share divestment offer is submitted and the currency in accordance with the provisions of laws and regulations;

The mandatory discount rate reflects the weighted average cost of capital used to generate cash flows according to the formula;

The components of the weighted average cost of capital in generating cash flows are calculating the cost of equity, returns on comparable investments, debt costs classified as capital structure, industry risk, and company conditions, using market interest rate data of the average bank that carries out the financing function in determining the cost of debt, both short-term debt (working capital debt) and long-term debt (investment debt), making adjustments if there is debt financing with an interest rate that is different from the market interest rate to reflect proportional risk on the object of assessment, and calculating the weighted average cost of capital proportionally based on the weight of each type of capital structure and the cost of each type of capital structure.

 

Conclusion

Mineral and coal mining natural resources are under the control of the State which is not only regulated or recognized in Indonesian National Law, but also regulated in international law such as United Nations Resolution 1803 (XVII) concerning Permanent Sovereignty over Natural Resources. The legal basis for divestment is spread across various laws and regulations in Indonesia that have been regulated since 1967. The nationalization of foreign shares carried out by divestment in Indonesia is regulated in investment law and mineral and coal mining law. This is because nationalization in the Indonesian investment law is further regulated in the Act, while the Indonesian Mineral and Coal Mining Law has required foreign capital to be divested. With this respect, foreign investment companies that are the holders of Contracts of Work, Coal Mining Works, Mining Business Permits, and Special Mining Business Permits in the mineral and coal mining sector with ownership of shares in the company more than fifty percent are required to divest to the Indonesian side. The divestment obligation is offered to the Indonesian party in stages with a predetermined time limit. It can be repeated in the following year if no one is interested in buying from the Indonesian side, there are provisions for documents that need to be completed in divesting their shares, calculating the price of divested shares, the time limit for offering, the time limit for responding the offering, and other arrangements regulated in Indonesian law.

References

Adolf, A. (2015) Aspek-Aspek Negara dalam Hukum International (Aspects of the State in International Law), 5th end, Bandung: CV Keni Media.

------------- (2015)  Hukum Ekonomi international Suatu Pengantar, Bandung: CV Keni Media.

Alika, R. (2020) Katadata.co.id, Retreived From  https://katadata.co.id/pingitaria/finansial/5f7ddb0c60090/uu-cipta-kerja-buka-14-jenis-usaha-yang-sebelumnya-tertutup-bagi-asing