Local administrations in Papua to get Freeport shares
The Jakarta Post
Coordinating Maritime Affairs Minister Luhut Pandjaitan has said local administrations in Papua will get shares from PT Freeport Indonesia when the company divests its 51 percent shares, as required by a new regulation.
“Yes, they [the administration] will get [the shares]. The percentage of shares will be discussed later,” Luhut said after meeting with Mimika Regent Eltinus Omaleng in Jakarta on Tuesday as reported by tempo.co.
Luhut said the central government would also discuss with relevant parties the mechanism for which the shares would be transferred to local administrations.
Meanwhile, after the meeting, Eltinus said Luhut mentioned the figure would be between 10 percent and 20 percent, which Luhut said had been demanded by the regent.
Eltinus said the shares for Papuans would be distributed to the Papua administration, Timika administration and the people holding rights to customary communal land near the copper and gold mining site.
President Joko “Jokowi” Widodo signed on Jan. 11 Government Regulation (PP) No. 1/2017, a revision to PP No. 23/2010 on the implementation of the mineral and coal mining business.
Under the regulation, mining companies are required to construct a smelter as a precondition for them to export the concentrates.
The companies, including Freeport, are also required to change contracts of work (CoW) to a special mining license (IUPK). With the IUPK, foreign companies are also required to divest 51 percent of their shares. (bbn)
You might also like :
- Palm oil producers revise up palm oil production, stock data
- Regulation on EURO IV adoption signed
- Railway station tunnels to be completed in April
- Chinese investor interested in Vale Indonesia’s Bahodopi smelter project
- Government faces rampant lawsuits for revocation of mining permits
- Vale Indonesia to spend US$90 million for smelter rejuvenation, expansion
- PLN expedites financial closure of Tanjung Jati B power plant expansion
- Jakarta saves 157 MW during Earth Hour 2017
- Garment exports projected to stagnate this year
- Only 40 percent of Indonesians can afford to buy a house: Sri Mulyani