Holding State-Owned Mining will Buy PT Freeport Shares
By : Herry Barus And Aldo Bella Putra | Saturday, November 25 2017 - 15:00 IWST

Menuju Holding BUMN Industri Pertambangan
INDUSTRY.co.id - Jakarta - State Ministry of State-Owned Enterprises (BUMN) states that state-owned mining companies will purchase PT Freeport Indonesia's shares by utilizing loans from state-owned bank funds if the funding from equity holding is insufficient.
"If the funding is enough from the holding equity, then it is already completed, if there is not enough, then there will be a bank loan," said Deputy of Mining Business, Strategic Industries and Media at BUMN Ministry, Harry Sampurno, Friday (24/11 / 2017)
Harry explained that the role of government banking will be needed as Medco acquired Newmont.
"If Medco is assisted, we will not be assisted by state-owned companies, we will be assisted by government banks because this is a form of synergy," he said.
Harry said that when consolidated, the holding equity of the mine reached Rp64.6 trillion or Rp65 trillion. The amount, he added, will be able to increase its funding capability up to three times so it will not interfere with the financial performance of the company.
These conditions will be very different if the company is still not incorporated in one holding.
"Once the holding of Rp65 trillion is doubled to Rp120 trillion, the three-fold rule of thumb is safe," he said as quoted by Antara.
The value, continued Harry, has included a 9.36 percent stake in Freeport shares.
There is also the remaining value of the divestment of shares to be annexed by the Indonesian government up to 51 percent cannot be known because it is still in the negotiation phase.
"Let's put the figure at 3 billion US dollars. Well, we leverage it was twice as much as Rp120 trillion, so I do not need to explain again," he assured the mine holding capability to buy the divestment of shares of the US mining company.
PT Indonesia Asahan Alumunium (Inalum) will become the holding company of state-owned mining industry, while PT Aneka Tambang Tbk, PT Bukit Asam Tbk and PT Timah Tbk will become subsidiaries (holding members).
Holding the mine aims to improve business and funding capacity, management of mineral and coal resources, enhancement of added value through downstream and increase local content and cost efficiency synergies. In addition, another purpose of holding form is to control 51 percent of Freeport shares that have been agreed to be divested by the Indonesian government.
In the short term, the holding which will be officially approved on 29 November will soon conduct a series of corporate actions including the construction of a smelter grade alumina plant in Mempawah, West Kalimantan, with capacity up to 2 million tons per year; Ferro Nickel plant in Buli, East Halmahera, with a capacity of 13,500 tons per year; and the construction of a steam power plant at a downstream mill down to 1,000 MW.
Read Also
President Prabowo Subianto Inspects Precious Metal Production at…
Aramco Digital and Intel Aim to Forge Collaboration to Establish…
Minister of Trade, Zulkifli Hasan visited the construction of the…
President Jokowi Meets Freeport McMoRan Chairman, Welcomes Discussion…
Citi Facilitate s Harita Nickel’s Initial Public Offering (IPO)
Today's Industry

Jumat, 02 Mei 2025 - 10:46 WIB
Binawan and Government Support Indonesian Nurses in Europe through Scholarships
In the midst of the viral #KaburAjaDulu hashtag as a symbol of the young generation's disappointment with domestic working conditions, Binawan responded with real action: dispatching Indonesian…

Jumat, 28 Maret 2025 - 22:21 WIB
SUNeVision Initiates MEGA IDC Phase Two Development
SUNeVision, the technology arm of Sun Hung Kai Properties (SHKP), today announced the commencement of construction for Phase Two of MEGA IDC in Tseung Kwan O. As Hong Kong's largest data centre…

Jumat, 28 Maret 2025 - 22:07 WIB
TDL Records New Revenue Record of IDR 25 Trillion in 2024 Ahead of 50th Anniversary
PT Metrodata Electronics Tbk (MTDL), the largest technology Company with the most complete IT and telecommunications products in Indonesia, managed to record a revenue of IDR 25 trillion in…

Jumat, 28 Maret 2025 - 22:00 WIB
Wireless Logic Selected By Thales As IoT Connectivity Partner
Wireless Logic, a global leader in IoT connectivity solutions has been selected by Thales, a global leader in advanced eSIM technologies, to enable secure, scalable and resilient IoT connectivity…

Jumat, 28 Maret 2025 - 21:53 WIB
Microvista Expands International Presence with Mobile CT System ScanExpress
The German specialist in industrial computed tomography and non-destructive testing, Microvista, announces the European expansion of its innovative mobile CT system, ScanExpress. The system…
News Comment