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Jakarta Post

Freeport divestment to wrap up mid-July, says SOEs minister

  • Stefanno Reinard Sulaiman

    The Jakarta Post

Jakarta   /   Mon, July 2, 2018   /   02:53 pm
Freeport divestment to wrap up mid-July, says SOEs minister Freeport Indonesia’s Grasberg mine in Mimika, Papua, is seen in this undated photograph. (JP/Nethy Dharma Somba)

State-owned Enterprises (SOEs) Minister Rini Soemarno hinted on Saturday that state mining holding company Inalum's purchase of shares in gold and copper miner PT Freeport Indonesia (PTFI) was expected to be completed by mid-July.

The purchase is expected to wrap up Freeport's required divestment of 51 percent of its shares to Indonesian entities.

In a video released on, Energy and Mineral Resources Minister Ignasius Jonan said in Washington on June 28 that the discussion between the government and Freeport McMoran, PTFI's parent company, went beyond the value of the required divestment.

"The upcoming agreement deals with investment programs, operation programs such as a dividend policy through 2041,” Jonan said, adding that the details on these issues were discussed to avoid instability at Inalum and Freeport McMoran during the divestment process.

Meanwhile, Jonan said, the agreement on investment commitment was expected to maintain business stability, particularly during the government's policy change.

"For example, an agreement on tax and royalty is needed to anticipate changes in the issuance of new regulations," he said. (bbn)