State-owned bank interest is not competitive PT Freeport's divestment
By : Herry Barus And Aldo Bella Putra | Tuesday, August 07 2018 - 14:00 IWST

PT Freeport Indonesia. (Ist)
INDUSTRY.co.id - Jakarta - State-owned bank interest is considered not competitive to become a lender or financing to Inalum who bought PT Freeport Indonesia shares.
Deputy of Mining Business, Strategic Industry and Media Ministry of BUMN Fajar Harry Sampurno in a discussion "Lika Liku Acquisition of Freeport Shares" in Jakarta, Monday (08/06/2018) said the exchange rate pressure made domestic banks, including state-owned banks, provides interest higher loans than foreign banks.
"State-owned banks are not unwilling to finance. So there is pressure on 'foreign exchange' so that the interest of domestic banks is higher than that of foreign banks," he said.
Harry explained that by calculating the loan interest, it would be more profitable for Inalum to borrow from foreign banks.
"If state-owned banks are more competitive, they could be. Especially good because they are a synergy of SOEs. But for a loan of this size, our state-owned banks may not have large allocations," he said.
Previously, Harry said there were 11 lending banks to Inalum to buy the divestment of PT Freeport Indonesia shares.
However, he said the number included three state-owned banks in addition to foreign banks.
"11 may include non-performing BUMNs, namely three banks. But yes there may be additional, I don't know," he said without explaining in more detail.
In accordance with the head of agreement (HoA) signed on July 12, 2018, Inalum will buy Freeport's 3.85 billion divested shares.
The details of the 3.5 billion US dollars allocated for the payment of Rio Tinto's participation rights in Freeport and the remaining 350 million US dollars to buy Indocooper shares in Freeport.
The Japanese bank, The Bank of Tokyo-Mitsubishi UFJ Lt, will be the head of the syndicated lender bank to Inalum to control 51 percent of PT Freeport Indonesia's shares.
Read Also
Increase in New Loan Disbursement Drives Growth in KB Bukopin's Interest…
PermataBank Holds Annual General Meeting of Shareholders 2023 and…
The Importance Of Cashflow Considerations In The Supply Chain
Fully Supported by KB Financial Group- South Korea, Bank Bukopin…
Index Launch: Remittances Play a Powerful Role in Consumers’ Financial…
Today's Industry

Sabtu, 23 September 2023 - 11:33 WIB
Growing Above Industrial Average, CLEO Strives for Innovation
Producer of bottled drinking water with the brand "CLEO", PT Sariguna Primatirta Tbk (Tanobel Group) targets its sales in 2023 to grow above the average of the bottled drinking water (AMDK)…

Kamis, 14 September 2023 - 15:15 WIB
INOV Poised to Absorb PET Recycling Market Potential
The prospects of PT Inocycle Technology Group Tbk ("INOV") a public company in the field of recycling plastic (PET) bottle waste into Recycled Polyester Staple Fiber (Re-PSF), looks bright for…

Senin, 11 September 2023 - 09:07 WIB
Indonesian Cuisine, Cultural Performances Enliven Gala Dinner of 43rd ASEAN Summit
President Joko “Jokowi” Widodo and First Lady Iriana Jokowi hosted a gala dinner for leaders of ASEAN member states, partners, and international organizations at Hutan Kota restaurant in…

Senin, 11 September 2023 - 07:45 WIB
ASEAN, UN to Enhance Cooperation in Maintaining Regional Peace
On the margin of the 43rd ASEAN Summit, President Joko “Jokowi” Widodo Thursday (09/07) hosted Secretary-General of the United Nations António Guterres in a bilateral meeting at the Kakatua…

Senin, 11 September 2023 - 06:40 WIB
Indonesia, Japan Agree to Raise Partnership Status to Comprehensive Strategic
Indonesia and Japan have agreed to raise the partnership status of the two countries to strategic comprehensive, President Joko “Jokowi” Widodo has said.
News Comment