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Jakarta Post

State mining companies ready to take over Freeport

  • Viriya P. Singgih

    The Jakarta Post

Jakarta   /   Thu, March 23, 2017   /   04:01 pm
State mining companies ready to take over Freeport Aluminum products are displayed at a factory of state-owned aluminum producer PT Indonesia Asahan Aluminium (Inalum). (tempo.co/File)

The government has started consolidating state mining companies to take over the majority stakes in gold and copper miner PT Freeport Indonesia by 2019, while waiting for the House of Representatives’ approval for a holding company for state-owned mining firms.

The State-Owned Enterprise (SOE) Ministry’s deputy of mining, strategic industries and media, Fajar Harry Sampurno, said that the ministry had sent a letter informing the Finance Ministry and the Energy and Mineral Resources Ministry of the interest to take over the subsidiary of American mining giant Freeport McMoRan.

“We have stated our readiness, but still have to wait for the final decision,” Fajar said on Wednesday in Jakarta. “But if we are appointed to take over the shares, we must be ready. That’s why we have started consolidating all of the mining companies under the planned holding company.”

The government plans to form holding companies for various sectors including mining, financial services and construction, with the aim of boosting the value, debt leverage and efficiency of all state enterprises.

State-owned aluminum maker PT Indonesia Asahan Aluminum (Inalum) has been projected to be the holding company for mining companies. The House is now deliberating Government Regulation (PP) No. 72/2016 on procedures for state capital injections into SOEs as the legal umbrella for the holding company.

“There needs to be an understanding with all lawmakers first [to realize the PP],” said the SOE Ministry’s deputy for company restructuring and development, Aloysius Kiik Ro. (ags)