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Indonesia to Pare Foreign Investors' Mining Stakes

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A presidential decree made in Feb. 2011 requires foreign companies to cut stakes in mining companies to less than 50%. Previously upto 80% ownership was allowed in mining companies by foreign companies. The regulations show that foreign investors with 100% of ownership of mines are required to reduce their stakes by 20% within 6 years, 30% by 7th year, 37% by 8th year, 44% by 9th year, 51% by 10th year, selling to domestic investors. The idea is to maintain a share in domestic ownership of assets. Mining contributes 12% of Indonesia's GDP.

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