PT Freeport`s 51% divestment not negotiable: Indonesian minister

PT Freeport`s 51% divestment not negotiable: Indonesian minister

Illustration. Freeport Indonesia. (ANTARA News/Lukisatrio)

Jakarta (ANTARA News) - Indonesia`s finance minister Sri Mulyani stated here on Friday that the divestment of PT Freeport Indonesia shares up to 51 percent is mandatory and not negotiable.

"We can assure a commitment of up to 51 percent shares divestment, which is in line with the instruction of the President and is non-negotiable," she asserted at the signing of an agreement for the distribution of part of the shares to be divested to the regional government of Papua.

Mulyani noted that negotiations on more detailed items with PT Freeport are still underway.

She stressed she could not reveal more on the negotiations as the government was committed to completing the whole process before releasing any information to the public.

"So, it does not mean we are not transparent, but we honor corporate management," she clarified.

Mulyani reiterated that the 51 percent divestment would be a priority of the Indonesian government.

"We are moving in the right direction and will make it public as soon as it is completed," she added.

The central government and the administrations of Papua Province and Mimika District, as well as PT Inalum, have signed an agreement for the distribution of the divested shares of the copper and gold mining company PT Freeport Indonesia to these regions.

Based on the agreement, Papua and Mimika together will have rights over 10 percent of the shares of PT Freeport Indonesia after the divestment.

The agreement is one of the strategic and advanced steps related to the divestment after the principal agreements were struck between the Indonesian government and PT Freeport Indonesia on August 27, 2017.

Reported by Satyagraha