Freeport finally agreed to release 51 percent of shares

By : Ahmad Fadli Dan Aldo Bella Putra | Tuesday, August 29 2017 - 19:00 IWST

Ricard C Adkerson Presiden dan CEO Freeport, di Jakarta, Senin (20/2/2017)
Ricard C Adkerson Presiden dan CEO Freeport, di Jakarta, Senin (20/2/2017)

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.

News Comment

Today's Industry

Indonesian Ambassador to the United Nations Darmansjah Djumala receives award from the IAEA and the FAO in Vienna, Austria, Monday (20/9). (Photo: PR of BRIN)

Rabu, 22 September 2021 - 19:30 WIB

Indonesia Wins Award on Food Plant Breeding from FAO, IAEA

Indonesia has received an outstanding achievement award from the Food and Agriculture Organization (FAO) and the International Atomic Energy Agency or IAEA.

Deputy Cabinet Secretariat for Administrative Affairs Farid Utomo on the event, Tuesday (21/09). (Photo by: PR/Oji)

Rabu, 22 September 2021 - 19:00 WIB

PANRB Ministry Holds Bureaucratic Reforms, Performance Accountability System Evaluation at Cabinet Secretariat

Ministry of State Apparatus Empowerment and Bureaucratic Reform (PANRB) conducted the 2021 Evaluation of Performance Accountability System of Government Institutions (SAKIP) and Bureaucratic…

Photo caption: Foreign Minister Retno Marsudi attends the 65th International Atomic Energy Agency (IAEA) through video conference, Monday (20/9). (Photo by: Ministry of Foreign Affairs PR)

Rabu, 22 September 2021 - 18:00 WIB

Indonesia Calls for Nuclear Energy Use for Peaceful Purposes

During General Conference of the 65th International Atomic Energy Agency (IAEA) held on Monday (20/09), Indonesian Minister of Foreign Affairs Retno LP Marsudi called for the use of nuclear…

President Jokowi inaugurates Hot Strip Mill Factory #2 owned by state-owned steelmaker PT Krakatau Steel in Cilegon city, Banten province (21/09/2021). (Photo by: Presidential Secretariat’s Press, Media, and Information Bureau/Laily Rachev)

Rabu, 22 September 2021 - 17:15 WIB

SOEs Must Continue to Transform Despite Pandemic, President Jokowi Says

The transformation of state-owned enterprises (SOEs) must continue despite COVID-19 pandemic, according to President Joko “Jokowi” Widodo.

President Jokowi inspects and inaugurates Hot Strip Mill #2 Factory owned by PT Krakatau Steel (Persero) Tbk, in Cilegon city, Banten province, Tuesday (21/09). (Photo by: BPMI/Laily Rachev)

Rabu, 22 September 2021 - 16:57 WIB

President Jokowi Inaugurates Latest Technology Steel Factory in Banten

In a series of his working visits to Banten province, President Joko “Jokowi” Widodo, on Tuesday (21/09), visited and inaugurated Hot Strip Mill #2 Factory owned by the largest steelmaker…