Minister Jonan Extends PT Freeport's Permit to Complete the Negotiations

By : Hariyanto And Aldo Bella Putra | Tuesday, October 10 2017 - 15:00 IWST

Menkeu Sri Mulyani- CEO Freeport-McMoran Richard Adkerson- Menteri ESDM Ignasius Jonan (Foto Ist)
Menkeu Sri Mulyani- CEO Freeport-McMoran Richard Adkerson- Menteri ESDM Ignasius Jonan (Foto Ist)

INDUSTRY.co.id - Jakarta - Energy and Mineral Resources Minister Ignasius Jonan extended the status of PT Freeport Indonesia's Special Mining License (IUPK) within the next three months to January 2018 to finalize the negotiations.

IUPK PT Freeport Indonesia itself will be exhausted tomorrow Tuesday (10/10/2017), in connection with it then automatically the export license will also be extended until January 2018.

"IUPK is really on the 10th, we will give you three months," said Jonan during a meeting with the House of Representatives Commission VII at the DPR Complex, Senayan, Jakarta, Monday (9/10/2017)

In relation to technical matters concerning the 51 percent share divestment and tax formulation offered to PT Freeport Indonesia, Jonan does not discuss in more detail and will be discussed further in private.

So in the time of three months extension, Jonan wants to solve the problem with PT Freeport Indonesia, including the technical matter which has always been a drag.

Former Minister of Transportation also does not want to suppose if the issue does not finish from the time already given.

He also had estimated that 51 percent of the disinvestment from PT Freeport Indonesia is worth 4 billion US dollars.

Jonan said the valuation is projected 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's contribution of approximately 40 percent of the value.

Jonan further explained that 40 percent of the $ 20.74 billion was about $ 8 billion.

So if the majority divestment will be dimabil by Indonesia at least more or less should be prepared about 4 billion US dollars because it refers to a 51 percent divestment of 8 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, so the value is 8 billion." If 51 percent is yes 4 billion. "Easy to ask how much premium, because this control 51 percent, " said Jonan before Commission VII DPR. (Ant)

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