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Jakarta Post

Freeport divestment to be completed by end of this year: Jokowi

  • News Desk

    The Jakarta Post

Jakarta   /   Sun, September 30, 2018   /   09:10 am
Freeport divestment to be completed by end of this year: Jokowi  President Joko "Jokowi" Widodo (Antara via Reuters/Kham)

President Joko “Jokowi” Widodo has expressed optimism that the transfer of the 51.23 percent stake in gold and copper miner PT Freeport Indonesia’s (PTFI) to state-owned mining holding company PT Indonesia Asahan Aluminium (Inalum) can be completed by the end of the year.

“Later this year, God willing, Indonesia will control 51.23 percent of PT Freeport Indonesia through PT Inalum,” Jokowi said in an Instagram post on Friday.

Inalum signed on Thursday agreements with United States-based mining giant Freeport McMoRan Inc. (FCX) on the purchase of a majority stake in PTFI, which operates the gold and copper mine in Papua. To conclude the deal, however, Inalum, which represents the government in the talks, needs to settle the payment of US$3.85 billion to FCX and the Rio Tinto Group within six months.

“The agreement signed yesterday was an agreement on the divestment of PTFI. It is an agreement on sales and purchase of shares with PT Rio Tinto Indonesia,” the President said, adding that after the deal, Inalum would increase its ownership of PTFI shares from 9.36 to 51.23 percent.

Jokowi guaranteed that the divestment deal will be transparent.  

“After the completion of the divestment process and the change of contract of work scheme to a special mining permit, Freeport Indonesia will provide a larger contribution to the state,” Jokowi added. (bbn)