DPR Appreciates Jokowi-JK Government Related 51 Percent Share of Freeport

INDUSTRY.co.id - Jakarta - The government needs to be appreciated because it is considered successful to "soften" PT Freeport Indonesia so that the ownership of RI government share now becomes 51 percent, said Vice Chairman of Commission VII DPR Satya Widya Yudha.

"We appreciate President Jokowi's policy of 51 percent of Freeport shares, and the government tax is not reduced, and the government can use its right from KK (Contract of Work) to IUPK (PT Freeport Mining Special License)," said Satya Widya Yudha in a release on Sunday 3/9/2017)

According to Golkar politician, Freeport is ready to invest 20 billion US dollars as additional business including building a smelter.

For that, he said, all elements of the nation, especially the people of Papua are also expected to struggle together in order to own Freeport shares up to 100 percent.

In line with Satya, Member of Commission VII DPR Kurtubi also states, the success of negotiations by the government needs to be appreciated.

The appreciation, said Nasdem politician, especially in terms of availability of Freeport left KK and willing to follow IUPK.

Meanwhile, DPD RI member from Papua, Charles Simare Mare expressed his gratitude for President Jokowi's success over 51 percent of Freeport share divestment, and hopes that the central government will be more involved in Papua community.

Previously, PT Freeport Indonesia (PTFI) has announced a long-term framework after reaching the development of the final negotiation process with the Indonesian government.

"We are pleased to announce a framework agreement to support the operations and investments we are currently undertaking in Papua The achievement of an understanding of the structure of collective agreements is significant and positive for all stakeholders," said PTFI President and Chief Executive Officer Richard C. Adkerson through a written statement.

Based on the official statement received by Antara on Wednesday (30/8), PTFI will change the form of the Contract of Work into a special permit (IUPK) which will grant PTFI long term operating rights up to 2041.

Furthermore, the Government will provide fiscal and legal certainty for the duration of the IUPK period. Later, PTFI will commit to build a new "smelter" in Indonesia within five years.

Freeport-McMoran will agree to divest its ownership in PTFI based on fair market price so that Indonesia's ownership of PTFI shares will be 51 percent.