Minister of ESDM Expects Divestment of PT Freeport Four Billion Dollars

By : Hariyanto And Aldo Bella Putra | Tuesday, October 10 2017 - 14:00 IWST

INDUSTRY.co.id - Jakarta - The Minister of Energy and Mineral Resources (ESDM) Ignatius Jonan estimates the devaluation of 51 percent of PT Freeport Indonesia worth four billion US dollars.

Jonan said on the basis of valuations if it is projected that Freeport McMoran (FCX) in the New York Stock Exchange has a market value of 20.74 billion US dollars, then Freeport Indonesia contributes approximately 40 percent of that value.

In a joint meeting with the House of Representatives Commission VII, Senayan, Jakarta, Monday (9/12/2017) Jonan further explained 40 percent of 20.74 billion US dollars of approximately eight billion US dollars.

So if the majority divestment will be dimabil by Indonesia at least more or less should be prepared about four billion US dollars because it refers to a 51 percent divestment of eight billion US dollars.

"If it is referenced, the average in 5-10 years of profit contribution from Grasberg or PTFI operations is about 40 percent, yes the value is eight billion.If 51 percent is yes four billion.Easy to ask what premium, because this control 51 percent," said Jonan before the House of Representatives Commission VII.

The issue of control, according to Jonan is currently still in the conversation. But it has been committed since the beginning, that for the implementation of the mine is still carried out by Freeport McMoran, but managerial or arrangement remains under the Indonesian government.

The decision to renew itself, the government insisted if it would be given if the terms offered by Indonesia had been agreed upon among them 51 percent divestment, the two had committed to make the smelter, the three state revenues must be greater.

While the strategy to lead to the technical thing, the government will discuss it in private. (Ant)

News Comment

Today's Industry

Wellington College Independent School Jakarta (WCIJ)

Senin, 29 April 2024 - 05:02 WIB

One of the UK’s Most Established Schools Chooses Jakarta for Their Latest Opening

Wellington College Independent School Jakarta (WCIJ) is thrilled to announce its grand opening in September 2024! As the first private UK school to open in Indonesia, WCIJ, a pioneering co-educational…

Presiden Jokowi

Selasa, 23 April 2024 - 10:29 WIB

President Jokowi Reaffirms Commitment to Farmers’ Welfare

President Joko “Jokowi” Widodo on Monday (04/22) inspected corn harvest in Boalemo regency, Gorontalo province. “Our corn import has decreased significantly from 3.5 million tonnes to…

Photo: Aris Nurjani/VOI

Rabu, 28 Februari 2024 - 12:47 WIB

Carsurin and NBRI Strengthen Strategic Alliance to Propel Indonesia’s EV Industry

PT Carsurin Tbk ("Carsurin") and the National Battery Research Institute ("NBRI") are pleased to announce the signing of a pivotal Strategic Alliance Agreement (SAA), marking a significant advancement…

Beras (Foto/Rizki Meirino)

Rabu, 21 Februari 2024 - 08:43 WIB

Gov’t to Continue Disbursing Rice Assistance

President Joko “Jokowi” Widodo has ensured that the Government will continue rolling out the rice assistance program for low-income families. The President made the statement when handing…

Ilustrasi pabrik beras. (Foto: DetikFood)

Rabu, 21 Februari 2024 - 08:40 WIB

Bapanas Head Ensures Availability of Rice Stock Ahead of Ramadan

The National Food Agency (Bapanas) has ensured the availability of rice for the fasting month of Ramadan and Eid al-Fitr 1445 Hijri/2024 CE. “We believe that there is enough rice for the fasting…