Indonesia investment ministry meets Agincourt to discuss future of Martabe gold mine

Indonesia’s investment ministry said on Monday it had met with Agincourt Resources to discuss legal and environmental aspects of operations at the Martabe gold mine, after Jakarta revoked its mining permits due to environmental violations.

Agincourt is part of conglomerate Astra International. Astra’s majority shareholder is Jardine Matheson.

The gold mining company was among the 28 firms whose permits were revoked by the government following accusations of environmental breaches that worsened last year’s floods in Sumatra, which killed at least 1,200 people.

Sovereign wealth fund Danantara Indonesia, headed by investment minister Rosan Roeslani, has set up a new company, PT Perusahaan Mineral Nasional or Perminas, to take over Martabe.

In a statement in his capacity as investment minister, Roeslani said any decision by the government regarding the mine will be made cautiously.

“The government reiterates that every policy and decision will be made carefully, transparently, and based on the law, as well as ensuring trust in the investment climate,” Roeslani said.

Analysts said that President Prabowo Subianto’s crackdown on the resources sector, including the Martabe takeover, could weigh on investor sentiment.

(By Ananda Teresia and Gayatri Suroyo; Editing by Martin Petty)