Freeport finally agreed to release 51 percent of shares

INDUSTRY.co.id - Jakarta - PT Freeport Indonesia, a US mining company operating in Papua, agreed to release its stake up to 51 percent.

Since its operation in 1967 until now, the Government of Indonesia's shares are only 9.36 percent. Freeport also said it would comply with the provisions issued by the government. So it was raised in a press conference about the results of government negotiations with PT Freeport Indonesia.

"Both parties agreed to divest 51 percent of PT Freeport Indonesia's shares to Indonesia's national ownership," ESDM Minister Ignatius Jonan said in an official statement on Tuesday (29/8).

Technical matters related to the divestment stage and implementation time will be discussed by the team from the Government and PT Freeport Indonesia. Jonan said, the government and PT Freeport Indonesia will work together to immediately complete the documentation of the agreed structure.

 In addition, PT Freeport Indonesia will obtain the necessary corporate approvals.

"The result of this negotiation is in accordance with the instructions of Mr. President Joko Widodo to prioritize the national interest, the interests of the people of Papua, the sovereignty of the state in the management of natural resources, and keep the investment climate remain conducive," he said.

The divestment is one of the four points of agreement between the government and PT Freeport Indonesia for the continuity of the US mining company's business in Indonesia.

The rules concerning share divestment are contained in Government Regulation No. 1 of 2017 concerning the fourth amendment of Government Regulation No. 23/2010 concerning the Implementation of Mineral and Coal Mining Business Activities.