AFG Venture Group Dispatches

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COW Renegotiations – The Current Position and the Likely End Game by Bill Sullivan of Christian Teo Purwono & Partners

August 22nd, 2013

Bill Sullivan of Jakarta based law firm Christian Teo Purwono & Partners has produced an interesting piece outlining the Indonesian Government’s efforts to renegotiate legacy Contracts of Works to bring their terms into line with the 2009 Mining Law.

In the opinion of the writer, this apparent lack of any major progress over the past 12 months, in concluding the CoW renegotiation process, signals a subtle shift in the strength of the relative negotiating positions of the Government and the CoW holders away from the Government and in favor of CoW holders. This improvement in the relative negotiating position of the CoW holders is only likely to increase as the 31 December 2013 deadline for concluding the renegotiating process and the 2014 Presidential Elections come ever closer. Time is definitely not on the Government’s side.

Bill Sullivan is one of the leading mining, energy and resources lawyers in Indonesia and is regarded as one of Indonesia’s leading experts on the local mining law and regulatory regime.

The full text of his article may be accessed here: COW RENEGOTIATIONS – THE CURRENT POSITION AND THE LIKELY END GAME