Author(s): Suwarsit, An An Chandrawulan, Isis Ikhwansyah, Zainal Muttaqin
State Sovereignty is used to make the rule of law in which the law is an incarnation of the will of the state. The law on the divestment of foreign shares of mineral and coal mining stipulated in Law No. 4 of 2009 concerning Mineral and Coal Mining, is considered insufficient to accommodate issues related to divestment, while Law No. 4 of 2009 on Mineral and Coal Mining, has now undergone changes with the issuance of Law No. 3 of 2020 on Mineral and Coal Mining. This study aims to find the regulation and sovereignty of the country against the divestment of foreign stocks after a change in mineral and coal mining laws. The research method uses normative legal research, with a statutory approach. The results showed that the country's sovereignty over the divestment of foreign shares is not only regulated in mining law but also regulated in investment law. State sovereignty over the divestment of foreign shares after a change in mineral and coal mining law is stipulated in Article 112 of Law No. 3 of 2020 concerning Mineral and Coal Mining and its implementing regulations, while the arrangement of submission of offers can be made by business entities holding Mining Business Licence (IUP Production Operations), Operation Production Special Mining Business Licence (IUPK Production Operations), Contact of Work (KK) and Coal Mining Concession Work Agreement (PKP2B). There is no time limit to apply the obligation to divest the first shares for foreign investment. The Indonesian party must provide an offer answer with a period of no later than 30 calendar days. Evaluation and negotiation of divestment share prices is conducted by independent assessors and the formation of divestment teams, while the share price of divestment is calculated using a comparison of market data and discounted cash flow.