East Kutai regency Rejects Negotiations with Churchill Mining - Tribune Article

East Kutai regency Rejects Negotiations with Churchill Mining (Original Article & Text in Indonesian) May 13, 2013

I've endeavoured to have a friend translate this one (got to be better than Google Translate).

East Kutai regency Rejects Negotiations with Churchill Mining - Tribune reporter reports Kaltim, Kholish Chered of Singapore

TRIBUNNEWS.COM, SINGAPORE - The inaugural session of arbitration between the Government of Indonesia is facing a lawsuit from Churchill Mining Plc, a British company, at the International Centre For Settlement of Investment Disputes (ICSID) being held this morning, Monday (13/05/2013).

The trial will be held in Stamford Raffles Room, Maxwell Chamber 3 Temasek Avenue # 16-10, Centennial Tower, Singapore. 

At the beginning of the arbitration hearing, the Government of East Kutai Regency, as the named defendant, still refused to negotiate steps. This was said by the Regent of East Kutai, Isran Noor.

"They seem to want to negotiate. There is an impression like that. But I do not want to. However it has not been formally conveyed," said Isran Noor told Tribune Kaltim (Tribunnews.com Network).

Based on the ICSID website, a hearing conducted in Singapore as the meeting between Churchill Mining the Republic of Indonesia, as well as Planet Mining Pty Ltd with the Republic of Indonesia (ICSID Case No.. ARB/12/14 and 12/40).

Legal team of the Republic of Indonesia (RI) has appointed Singapore-based arbitrator, Michael Hwang to oppose Churchill in ICSID, which is suing the Republic of Indonesia for USD 2 billion, or about Rp 18 trillion. Plaintiff pointed to Albert Van Den Berg. While the chairman is Prof. Gabriel Kaufmann tribunalnya.

Michael Hwang is an arbiter of Singapore. In 1991, Michael had appointed a Judicial Commissioner of the Supreme Court of Singapore. After completing his term in 1992, Michael was promoted as one of the senior advisors in 1997. Later he became President of the Law Society of Singapore.

Earlier, President Susilo Bambang Yudhoyono (SBY), has appointed East Kutai Regency to become parties to the ICSID process conducted arbritase. It is stated in Presidential Decree No. 30 of 2012, published 22 September 2012.

"We were given full responsibility to face the lawsuit. Was better, as I became more free. Nonetheless Kemenkum Attorney General and Human Rights remains a leading institution," said Isran.

In the decree [One assumes the international arbitration decree], mentioned the appointment of the East Kutai Regency of ICSID consent is not required as stipulated in Article 25 paragraph (3) of the Convention on the Settlement of Disputes between States and foreign nationals regarding investments.

"The President also commissioned the Minister of Law and Human Rights Amir Syamsudin to take the necessary measures so that the appointment of the East Kutai regency registered and announced by the ICSID in accordance with the conventions, rules, and regulations in the ICSID," according to the announcement.

Then, because the Indonesian side plays as a defendant, who bears the cost for arbitration at ICSID? And related costs of internal preparation, such as the appointment of arbitrators and consolidation, whether sourced from the state budget, budget, or other sources?

Responding to these questions, Isran Noor just give a brief answer, that each party should pay. "Equally the cost of necessities such as hearing," he said via text message.

While referring to Presidential Decree 78 of 2012 on the appointment of the Indonesian legal team, as quoted from the official website of the Secretariat of the Cabinet of the Republic of Indonesia . While the costs required for the implementation of the duties and authorities Attorney Time are charged to the state budget. It's not yet known whether the appointment Kutim as a responsible party, along with a variety of legal manoeuvres, will also be borne from the budget or just have an impact on the use of the East Kutai budget for litigants.

Because the regulation of the formation of power law (Presidential Decree 78/2012) and Decree of the President on the appointment of the East Kutai regency as a responsible litigant (Presidential Decree No. 30 of 2012), were both issued on 22 September 2012.