Observer: Inalum Must Immediately Take Control of Freeport Divestment Share

By : Hariyanto And Aldi Firhand. A | Sunday, March 18 2018 - 20:34 IWST

Tambang Freeport
Tambang Freeport

INDUSTRY.co.id - Jakarta - An observer of UGM energy economy, Fahmy Radhi asked the parent company of state-owned mining company PT Indonesia Asahan Aluminum (Persero) or Inalum to own 51% stake in PT Freeport Indonesia.

"Inalum must be fully committed to seriously resolving the negotiations and controlling 51 percent of Freeport divestment shares before June 30, 2018, so that the Freeport concentrate export permit does not need to be extended anymore," he said in Jakarta on Friday (16/3/2018).

According to Fahmy, the divestment of 51% Freeport shares divestment will bring about various potential risks both economic, as well as social and political risks.

"As long as Inalum can not immediately complete the negotiation process, then the ESDM Minister will forever be forced to extend the concentrate export permit to avoid the potential risks that arise," he added.

Fahmy also said that Inalum's legal position as a holding company is getting stronger after the Supreme Court (MA), which rejects the lawsuit of mining companies' holding rule, filed by the Coalition of Civil Society Rescue Society (BUMN).

The lawsuit is filed against Government Regulation No. 47 of 2017, which has eliminated the status of three SOEs, so it is considered to violate the Law on State-Owned Enterprises and the Law on State Finance.

However, the Supreme Court's verdict on March 6, 2018 on the material test confirms PP 47/2017 does not violate the provisions of the Law on State-Owned Enterprises and State Finance Law, so that it remains in accordance with the objectives of the 1945 Constitution Article 33 paragraphs 2 and 3.

"With the outcome of the Supreme Court's verdict, all parties, including the Civil Society Coalition, must accept the Supreme Court's decision, further supporting the establishment of a 'holding' SOE mine for the welfare of the people," he said.

The 'Holding' of SOE mines was established under the PP 47/2017 by appointing Inalum as the holding company of state-owned mining companies and members consisting of PT Aneka Tambang Tbk, PT Bukit Asam Tbk and PT Timah Tbk.

The objective of establishing 'holding' of the mine is to strengthen the financial structure, achieve efficiency, and business integration, and create value creation, so that mining SOEs can compete in the global market and comply with Article 33 of the 1945 Constitution.

News Comment

Today's Industry

Tanny M, Business Development Division Head, resmi membuka Safety Campaign Award 2018

Jumat, 20 Juli 2018 - 19:00 WIB

Safety Campaign Award 2018 Officially Opened

Jakarta - Based on data from Polda Metro Jaya, during the period of January-December 2017, at least victims who had a traffic accident reached 6,949 people. This figure is down 4 percent from…

Pekembangan Emas

Jumat, 20 Juli 2018 - 18:30 WIB

Gold Drops, Dollar Rises

Jakarta - This trading week may be very bearish for gold that slumped to its lowest level this year amid Dollar appreciation.

Agung Hendriadi Kepala Badan Ketahanan Pangan Kementan (Foto Dok Industry.co.id)

Jumat, 20 Juli 2018 - 18:00 WIB

Ministry of Agriculture Discusses Food and Nutrition Issues Together with FAO and WFP

Jakarta - Agricultural development is very important in fulfilling the food and nutritional needs of the community, therefore _Food Agriculture Organization (FAO) and World Food Program (WFP)…

DR. Rizal Ramli, Ekonom Senior (Foto Dok Industry.co.id)

Jumat, 20 Juli 2018 - 17:30 WIB

#Thepowerofemakemak Movement Ask Rizal Ramli to be 2019's Captain

Jakarta - A group of mothers who joined in the #thepowerofemakemak movement declared support for Rizal Ramli as a presidential candidate for the period 2019-2024.

Pertemuan Ketum Golkar Airlangga Hartarto dan Ketum PDIP Megawati Soekarno Hatta

Jumat, 20 Juli 2018 - 17:00 WIB

LIPI Predicts Six Party Escaped Parliamentary Threshold

Jakarta - Indonesian Institute of Science (LIPI) Survey estimates that only six political parties pass parliamentary threshold or parliamentary threshold in 2019 election, but anything can happen…