Limits Placed on Foreign Ownership of Indonesian Mines

Bloomberg reported that foreign companies will not be allowed to own greater than 49 percent of some Indonesian mines, a move which may limit investment in the country’s coal industry.

As quoted in the market news:

Foreign miners of coal and minerals will need to sell shares to the central and regional governments, state-owned companies or local private companies, according to the decree on the website of the Directorate General of Coal and Minerals.

Coal mining will be less affected by the shareholding rule as most of ventures are majority-owned by local investors, Supriatna Suhala, executive director at the Indonesia Coal Mining Association, said by telephone.

Click here to read the full Bloomberg report.