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Jakarta Post

Freeport, govt butt heads over divestment details

  • Fedina S. Sundaryani and Viriya P. Singgih

    The Jakarta Post

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Jakarta   /   Mon, October 2, 2017   /  08:30 am
The Jakarta Post Image
A vehicle passes through gold and copper miner PT Freeport Indonesia’s (PTFI) mining area in Grasberg, Mimika, Papua.(JP/Nethy Dharma Somba)

The positive response over the government’s success in making Freeport McMoRan (FCX) agree to give up 51 percent of its shares seems to be premature, as the American mining giant’s letter showing strong rejection of the government’s divestment proposal has come to surface. After a series of negotiations tracing back to 2009, FCX CEO Richard Adkerson publicly announced last month that the firm had agreed to divest down FCX’s stake in PTFI to 49 percent from the current ownership of 90.64 percent. Since then, the two parties have gone back to the drawing board to whittle down the details of the divestment. However, a letter leaked over the weekend seems to show things are not going so smoothly. The letter, dated Sept. 28 and signed off by Adkerson, was addressed to the Finance Ministry’s secretary-general, Hadiyanto, and was strongly worded to demonst...