SOEs Continues to Push the Downstream Process of Indonesia Mining Industry
By : Dina Astria And Aldo Bella Putra | Friday, July 13 2018 - 17:00 IWST
![Menteri BUMN Rini Soemarno (Dok Industry.co.id)](https://eagle.industry.co.id/uploads/berita/detail/3986.jpg)
Menteri BUMN Rini Soemarno (Dok Industry.co.id)
INDUSTRY.co.id - Jakarta - Mining Industry Holdings INALUM, Freeport McMoRan Inc. (FCX) and Rio Tinto, signed the Head of Agreement related to the sale of FCX shares and Rio Tinto's participation rights at PT Freeport Indonesia (PTFI) to INALUM. INALUM ownership in PTFI after the sale of shares and rights was 51.23% from 9.36%.
The signing was carried out by INALUM President Director Budi G. Sadikin and FCX CEO Richard Adkerson, witnessed by Finance Minister Sri Mulyani, Minister of State-Owned Enterprises Rini Sumarno, ESDM Minister Ignasius Jonan and Environment and Forestry Minister Siti Nurbaya at the Ministry of Finance, Central Jakarta on Thursday (7/12/2018).
Under the agreement, Inalum spent US $ 3.85 billion to buy FCX shares and Rio Tinto's participation rights at PTFI. The parties will complete this sale and purchase agreement before the end of 2018.
The terms of this agreement are in line with the agreement on 12 January 2018 between the Government of Indonesia, the Provincial Government of Papua, and the Government of Mimika Regency, where the local government will get a share of 10% of PTFI's share ownership.
Finance Minister Sri Mulyani said the Government is committed to maintaining an investment climate that provides certainty to investors investing in Indonesia in accordance with the permits granted by the Government in the form of a Special Mining Business License (IUPK).
With the signing of the Principles of this Agreement, FCX and INALUM cooperation is expected to improve the quality and value added of extractive industries in the future as well as to provide prosperity for the people of Indonesia.
SOE Minister Rini Soemarno said, "In line with the function of development agency, SOEs continue to drive the downstream process of the Indonesian mining industry and a high commitment to improve the welfare of all communities, especially in Papua by ensuring the share of local government in this agreement."
Minister of Energy and Mineral Resources Ignatius Jonan said With the signing of this HoA, the overall agreement with FCX includes Divestment of 51.23% shares, the agreement is higher than the divestment obligation of 51% shares as required in Government Regulation no. 1 year 2017, in addition to the change from KK to IUPK can be completed, including Commitment to Development of Processing Facility and smelter, therefore PTFI will get IUPK Production Operation extension maximum 2X10 year
We expect the added value of copper commodity to be further improved through the development of a copper smelter with a capacity of 2-2.6 million tons per year within 5 years.
Minister of Environment and Forestry Affairs Siti Nurbaya added that through the control of PTFI's majority share by INALUM, the Government expects the quality of environmental management in the PTFI mine area to be continuously improved. We believe that PTFI as one of the largest mine managers in the world, will be able to maintain the sustainability aspects of the mine affected environment.
Read Also
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)
Gods Flame Digital Co., Ltd. officially Became a Strategic Partner…
Today's Industry
![Totolink outlet. (Photo: Public Relation of Totolink)](https://eagle.industry.co.id/uploads/berita/small/5782.jpg)
Kamis, 11 Juli 2024 - 22:08 WIB
Totolink Strengthens Commitment to Innovative and Reliable Network Solutions for Indonesia
Marking a strategic step, Totolink Indonesia proudly announces the enhancement of its head office in Jakarta, located at Harco Mangga Dua Blok E No.28, Sawah Besar, Central Jakarta.
![The President Commissioner of Bersama Digital Data Centres (BDDC), Setyanto Hantoro (fourth right) and The President Director of BDDC, Angelo Syailendra (third right) during the BDDC JST1 Inauguration Ceremony in Jakarta on Wednesday (10/07/2024).](https://eagle.industry.co.id/uploads/berita/small/5781.jpg)
Kamis, 11 Juli 2024 - 19:03 WIB
BDDC Inaugurates JST1 TIER IV Data Centre in Jakarta to Strengthen Digital Infrastructure
Bersama Digital Data Centres (BDDC), an in-town data centre provider with interconnectivity and integrated digital systems, inaugurated its 5 MW Tier IV data centre facility, JST1 (Jakarta Selatan…
![The Board of Directors of PTT Global Chemical (GC) pose for a group photo after receiving the prestigious SNI (Indonesian National Standard) certification for its InnoPlus Polyethylene resin. (Photo: GC Public Relations)](https://eagle.industry.co.id/uploads/berita/small/5780.jpg)
Kamis, 27 Juni 2024 - 15:30 WIB
Global Chemical Achieves Prestigious SNI Certification for InnoPlus Polyethylene Resin
PTT Global Chemical (GC) is proud to announce its successful attainment of the prestigious SNI (Indonesian National Standard) certification for its InnoPlus Polyethylene resin.
![Financial Literacy](https://eagle.industry.co.id/uploads/berita/small/5779.png)
Rabu, 26 Juni 2024 - 22:47 WIB
The Importance of Financial Literacy
Financial literacy refers to the ability to understand and use various financial skills effectively, including personal financial management, budgeting, and investing.
![Unveiling New Opportunities](https://eagle.industry.co.id/uploads/berita/small/5778.png)
Rabu, 26 Juni 2024 - 14:52 WIB
Unveiling New Opportunities
As we step into 2024, the cryptocurrency landscape continues to evolve, presenting unprecedented opportunities for investors, developers, and enthusiasts.
News Comment