Masalah tumpang tindih peruntukkan lahan dan perizinan lintas sektor sering 
bermasalah, yang dibawah ini  malah pada sektor yang sama dan berujung di 
pengadilan arbitrase. Kalau sudah berurusan dengan pengadilan diluar negeri, 
Indonesia sering kalah dan harus bayar denda yang tinggi sekali,… Ooh 
Indonesiaku,…

Indian Metal and Ferro Alloys Ltd (IMFA) has filed a lawsuit against the 
Indonesian government with an arbitration court in The Hague after the company 
failed to carry out mining operations at its concession in Kalimantan due to 
overlapping permits.
Director General of Mineral and Coal Bambang Gatot Ariyono said Wednesday that 
the Indian firm also demanded compensation worth US$581 million (about Rp 7.7 
trillion).
IMFA, which filed the arbitration lawsuit in September, acquired the concession 
from an Indonesian firm PT Sri Rahayu Indah (SRI) in 2010 for $8.7 million, 
said Heriyanto, Head of the directorate’s legal division.
SRI obtained an IUP mining business permit for a combined concession of 3,600 
hectares, spanning the regencies of East Barito, South Barito (South 
Kalimantan) and Tabalong (Central Kalimantan).
Problem emerged for IMFA after the local regency administrations issued permits 
to other seven investors.
The problem of overlapping permit emerged after the central government handed 
over the authority in issuing mining permits to local administrations as part 
of their greater autonomy power. This has been seen as one of the key 
challenges of investing in the Indonesian mining sectors.
Heriyanto said that IMFA has failed to conduct proper due diligence process in 
acquiring SRI. He said that the Indian firm should have consulted the central 
government before making the investment.

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