Minister mentions options for Freeport share divestment

Minister mentions options for Freeport share divestment

Senior Minister Luhut Binsar Pandjaitan. (ANTARA/Wahyu Putro A.)

We are looking for a win-win solution. On the other hand, Indonesia`s interests should not be sacrificed."
Jakarta (ANTARA News) - Coordinating Minister for Maritime Affairs Luhut Binsar Panjaitan has mentioned a number of options related to the purchase of 10.46 percent of share divestment of PT Freeport Indonesia.

"The state-owned enterprise can be one of the parties to purchase Freeport share divestment," Luhut Binsar Panjaitan said, after attending a workshop on waste management, here on Monday.

The senior minister will hold a meeting with state-owned aluminum maker PT Indonesia Asahan Aluminium (Inalum) on Monday evening.

However, he did not explicitly point out if Inalum would procure shares of PT Freeport Indonesia.

The minister admitted that he would discuss the best option to purchase 10.64 percent of Freeport Indonesias shares.

Nevertheless, the discussion between the government and Freeport should be held properly.

"We are looking for a win-win solution. On the other hand, Indonesias interests should not be sacrificed," he affirmed.

Earlier, the State Enterprises Ministry said on Thursday that it was awaiting the governments directives to procure 10.64 percent of Freeport Indonesias shares.

The ministry is focusing on establishing a state-owned mining holding company to which the governments 9.36 percent stake in Freeport will be transferred, Budi Gunadi Sadikin, the special staff of the state enterprises ministry, stated at a discussion.

PT Freeport Indonesia had halted its production activities with effect from Feb 10, 2017, following the governments decision to have greater control on raw mineral resources.

The government had proposed that the Special Mining Operations Permit (IUPK) should be used in place of the existing Contract of Work.

PT Freeport was reluctant to agree to the governments proposal, especially since IUPK holders were obliged to divest up to 51 percent of the shares, which means they will no longer be in full control of the company.

Furthermore, Freeport is planning to sue the government in the International Court of Arbitration.

Minister of Energy and Mineral Resources Ignasius Jonan had remarked on Feb 18 that PT Freeports plan to bring up the dispute in the International Court of Arbitration is legitimate, adding that the arbitration measure is far better than raising issues on the dismissal of employees as a tool to apply pressure on the government.

"Global corporations always treat their employees as valuable assets rather than as mere tools to gain profits," Jonan remarked.
(Uu.A063/INE/KR-BSR/A014)

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