Indonesia to Limit Foreign Stakes in Mines

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Indonesia to Limit Foreign Stakes in Mines
Indonesia has decided to take more profits from its mining industry, by way putting new regulations on foreign mining companies. The new regulations state that foreign mining companies have to reduce their stake in mines, by selling, so that the mines are owned at least 51%, by local companies. This is to happen over 10 years of acquisition of a permit. Indonesia is south- East Asia`s largest economy, its mining industry accounts for more than 10% of the country`s GDP, and has the world`s largest gold mine. This may be because product prices have been rising, and politicians have been very vocal in demanding better deals with mining companies. Companies such as Freeport, who have been operating on the old license, will have to acquire the new license- with new rules-, when their current contract ends. This piece of news has caused panic, and shares of Adani Enterprises, an Indian firm which owns coal mines, dropped by 9%, after this news.
This article shows the push by Indonesia to improve its economy and the welfare of its people even further, though the tactics used may come out as too selfish. The article shows also that Indonesia is does not want too many foreign influence on its land, and this move may serve this purpose well, scaring off potential foreign mining companies, as well as forcing some companies already operating in Indonesia, to leave. It is al...