Indonesia To Renegotiate Unjust Contracts

Rio de Janeiro (Antara Bali) - President Susilo Bambang Yudhoyono reiterated his commitment here on Friday that he would continue renegotiating contracts considered unfair for the state and people of Indonesia.

"It is our moral duty to change contracts with our partners made 20 or 30 years ago which are incorrect or unfair. I have a moral obligation to do this," he said at a press conference.

He added that the decision to renegotiate contracts had been made so Indonesia would have a better and fairer concept of economic activities, including a policy on working contracts with foreign partners.

He cited several working contracts in the mining sector, as an example, that had been considered harmful to the country in the long term.

In view of that, he said the Indonesian government has decided to renegotiate long-term contracts with foreign investors that were considered unfair to the government and people of Indonesia.(IGT)