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Newmont acquisition will benefit Indonesian economy: Didu

(Tribunnews

The Jakarta Post
Jakarta
Fri, November 27, 2015

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Newmont acquisition will benefit Indonesian economy: Didu (Tribunnews.com) (Tribunnews.com)


(Tribunnews.com)
Medco Energi Internasional's plan to acquire a 76 percent share of gold mining firm Newmont Nusa Tenggara (NNT) would benefit the Indonesian economy, according Said Didu of the Energy and Mineral Resources Ministry.

The acquisition, said Didu, would mean that Medco, an Indonesian oil-and-gas company would control a majority share of NTT, a subsidiary of the US mining firm Newmont. However, the share purchase would not impact the Indonesian government.

"In terms of royalties, taxes and labor, they are alike. If there is a profit, it will be belong to our own company, that's all. It's good for the Indonesian economy. But from the government'€™s perspective, in terms of tax revenue, the situation is the same," said Didu in Jakarta on Friday.

Hence, the government should not, in Didu'€™s opinion, interfere in the NTT acquisition plan by industrial tycoon and Medco owner Arifin Panigoro because it was purely a business-to-business transaction.

Energy and Mineral Resources Minister Sudirman Said said the ministry had yet to be informed about the acquisition, including how much of a percentage share of NTT would be purchased by Arifin.

"I do not know how much of a percent, that's a matter for the business-to-business transaction. We are not allowed to intervene," he said.

On Wednesday, Maritime Coordinating Minister Rizal Ramli disclosed Arifin's intention to acquire 76 percent of NTT for an estimated $2.2 billion by next month in a bid to expand Medco's business beyond its oil-and-gas foundation.

Currently, Nusa Tenggara Partnership, a joint venture between Newmont Mining and Japanese company Sumitomo, owns 56 percent of NTT. A local government consortium backed by the Bakrie Group and Multi Daerah Bersaing owns 24 percent. The local firms Pukuafu Indah and Indonesia Masbaga Investama own a 17.8 and 2.2 percent share, respectively. (ags)(+)

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