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Jakarta Post

Indocopper scheme aims to prevent selling of Freeport's shares: SOE Ministry

  • Stefanno Reinard Sulaiman

    The Jakarta Post

Jakarta   /   Tue, November 27, 2018   /   12:04 pm
Indocopper scheme aims to prevent selling of Freeport's shares: SOE Ministry Freeport Indonesia’s Grasberg mine in Mimika, Papua. (JP/Nethy Dharma Somba)

The government responded on Monday to Papua Governor Lukas Enembe's opposition to the assignment of PT Indocopper Investama (PTII) as the company that will accommodate 10 percent of gold and copper miner PT Freeport Indonesia’s (PTFI) shares that have been allocated for Papua.

State-Owned Enterprises Ministry mining, strategic industries and media affairs undersecretary Fajar Harry Sampurno said on Monday the decision to assign PTII to accommodate Papua’s shares in PTFI was to prevent the possible sale of shares by certain parties.

Fajar referred to an example of a local administration in West Nusa Tenggara that lost 24 percent of its shares in PT Multi Daerah Bersaing, a joint venture company established to accommodate the shares during the divestment process of gold and copper mining company PT Newmont Nusa Tenggara.

PTII currently holds 9.36 percent of PTFI's shares. State-owned mining holding company PT Indonesia Asahan Aluminium (Inalum) is set to acquire 100 percent PTII's shares. Under the ongoing divestment process, Inalum plans to control 51.23 percent of PTFI's shares.

The government will hand over 10 percent of PTFI's shares to Papua – represented by the Papua provincial administration and the Mimika regency administration.

Under the scheme, Inalum and Papua’s administration-owned company will own 60 percent and 40 percent of PTII, respectively. The 40 percent stake in PTII is equal to 10 percent of PTFI's shares.

After the divestment, Inalum, PTII and FCX will respectively own 26.23 percent, 25 percent and 48.76 percent of PTFI's shares. (bbn)