The Seven Percent Stake Saga

The Constitutional Court ruling last week was a telling blow for Finance Minister Agus Martowardojo. Five of the court's Justices in the panel of nine voted to halt the government's plan to buy the seven percent stake in Newmont Nusa Tenggara (NNT). Newmont runs Indonesia's second largest copper and gold mine in West Nusa Tenggara. The Court ruled that the government must seek approval from the House of Representatives (DPR) before such an acquisition can take place. The Supreme Audit Board (BPK) had earlier concluded that the acquisition of the US$246.8 million stake by the State Investment Agency (PIP) required the DPR's approval.

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