Vol. 6, Issue 3 (2020)
Structuring of multi-national company (MNC) PT Freeport Indonesia to be a state-owned company
Author(s): Mhd Halkis
Abstract: The Government of Indonesia's Strategic Policy for the arrangement of PT Freeport Indonesia is the implementation of Article 33 of the 1945 Constitution. There are four policies of Jokowi's government; change of Work Contract/Kontrak Karya (KK) status into Special Mining Business License/Izin Usaha Pertambangan Khusus (IUPK), the extension of Freeport contract until 2041, divest 51% share and smelter development. This study aims to analyze the government's governance of PT Freeport Indonesia's Multi-National Corporate (PMN) governance. Through the method of phenomenology, it is understandable that one of the difficulties of what the government faces is between the democratic will for economic sovereignty and the open market of global capitalist interests. Government assertiveness of Freeport enhances the bargaining position in negotiations and corporate governance. Experience has the potential to create administrative crises, leadership crises, political crises, and the crisis of legality. However, through the process of democracy has changed the political structure of government from Susilo Bambang Yudhoyono to Jokowi. The researcher concludes that social reality is the result of the interaction of various interests at a time. Indonesia's economic pattern from the perspective of the rule of law has the potential to deliver a crisis of legality. However, as a post-colonial Dutch state prioritizes the rechtsstaat side, legal certainty and new hope for the society for justice and togetherness are more concerned as a priority.