Choose Arbitration, Freeport Potentially Bankrupt
Rabu, 22 Februari 2017 - 20:58 WIB
Choose Arbitration, Freeport Potentially Bankrupt
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JAKARTA - Shares of Freeport Mc-Moran which is the parent company of PT Freeport Indonesia has potential to worsen if the process of arbitration at the International Court. Arbitration process takes a long time, and Freeport until now not able to export copper concentrate in that time.
"During ban on export of concentrate by applicable laws and regulations, there is no reason for government's afraid to face the threat of Freeport. They will calculate cost and benefit in implementing that threat. One calculation is increasingly falling prices Freeport McMoRan Copper & Gold shares on the New York Stock Exchange Inc. (FCX)," said economic energy expert from Gajah Mada University (UGM) Yogyakarta, Fahmy Radhi in Jakarta, Wednesday (22/2).
According to him, two years ago the price of FCX stock is still perched around USD62 per share. At the end of trading in December 2015, FCX stock price dropped to USD 8.3 per share. Furthermore, in January 2016 fell again to USD3,96 per share.
One cause of the decline in stock prices FCX sentiment is no certainty that the extension of KK Freport from the Indonesian government. So it believes the application of threat can be memperpuruk Freeport FCX stock price. In fact it is possible stock price declines continuing FCX would trigger bankruptcy McMoRan Copper & Gold Inc.
"Of course, the board of directors and shareholders do not want bankruptcy actually overwrite McMoRan Copper & Gold Inc," he said.
Based on the calculations, he said, it's unlikely that Freeport will apply acaman already stocked. However, the threat of Freeport is no more just a bluff, it remains to be fought all parts of Indonesia.
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This former Oil and Gas Governance Reform Team confirms that the main threatening behavior against Freeport Indonesia, has been greatly exaggerated, so that the Indonesian people must fight. No half-hearted bring PT Freeport McMoRan Chief Executive Officer (CEO), Richard C. Adkerson to Jakarta just to spread threat. Richad will bring an action against the Indonesian government to international arbitration, if within 120 days Freeport demands are not met.
Previously, he said, to oppose the Law 4/2009 on Mineral and Coal concentrate which prohibits the export of unprocessed and unrefined in Freeport smelter in the country is also threatening the Government. Threats include halting production, laying off employees of Freeport, the Indonesian government to bring an International Arbitase, just as is done now.
Because of the fear of the threat of Freeport, Government Susilo Bambang Yudhoyono (SBY) when it finally granted the demands of Freeport to continue to permit the export of concentrates, despite PTFI not eligible to obtain export licenses from the Ministry of Energy and Mineral Resources (ESDM) was held by Jero Wacik with issued Ministerial Regulation (Candy) EMR No 1/2014, which allow Freeport to export the concentrates to a certain level.
Not only that a Government Minister Joko Widodo cabinet, Sudirman Said nonetheless allow exporting consetrate. The export license was issued on a yearly basis based on the evaluation of the progress of the construction of the smelter.
At the time Minister Acandra Tahar, was also decided to allow Freeport exporting concentrates. But this time is different, Minister Ignasius Jonan strictly prohibit the export of concentrate without being processed and purified in smelter in the country.
"During ban on export of concentrate by applicable laws and regulations, there is no reason for government's afraid to face the threat of Freeport. They will calculate cost and benefit in implementing that threat. One calculation is increasingly falling prices Freeport McMoRan Copper & Gold shares on the New York Stock Exchange Inc. (FCX)," said economic energy expert from Gajah Mada University (UGM) Yogyakarta, Fahmy Radhi in Jakarta, Wednesday (22/2).
According to him, two years ago the price of FCX stock is still perched around USD62 per share. At the end of trading in December 2015, FCX stock price dropped to USD 8.3 per share. Furthermore, in January 2016 fell again to USD3,96 per share.
One cause of the decline in stock prices FCX sentiment is no certainty that the extension of KK Freport from the Indonesian government. So it believes the application of threat can be memperpuruk Freeport FCX stock price. In fact it is possible stock price declines continuing FCX would trigger bankruptcy McMoRan Copper & Gold Inc.
"Of course, the board of directors and shareholders do not want bankruptcy actually overwrite McMoRan Copper & Gold Inc," he said.
Based on the calculations, he said, it's unlikely that Freeport will apply acaman already stocked. However, the threat of Freeport is no more just a bluff, it remains to be fought all parts of Indonesia.
This former Oil and Gas Governance Reform Team confirms that the main threatening behavior against Freeport Indonesia, has been greatly exaggerated, so that the Indonesian people must fight. No half-hearted bring PT Freeport McMoRan Chief Executive Officer (CEO), Richard C. Adkerson to Jakarta just to spread threat. Richad will bring an action against the Indonesian government to international arbitration, if within 120 days Freeport demands are not met.
Previously, he said, to oppose the Law 4/2009 on Mineral and Coal concentrate which prohibits the export of unprocessed and unrefined in Freeport smelter in the country is also threatening the Government. Threats include halting production, laying off employees of Freeport, the Indonesian government to bring an International Arbitase, just as is done now.
Because of the fear of the threat of Freeport, Government Susilo Bambang Yudhoyono (SBY) when it finally granted the demands of Freeport to continue to permit the export of concentrates, despite PTFI not eligible to obtain export licenses from the Ministry of Energy and Mineral Resources (ESDM) was held by Jero Wacik with issued Ministerial Regulation (Candy) EMR No 1/2014, which allow Freeport to export the concentrates to a certain level.
Not only that a Government Minister Joko Widodo cabinet, Sudirman Said nonetheless allow exporting consetrate. The export license was issued on a yearly basis based on the evaluation of the progress of the construction of the smelter.
At the time Minister Acandra Tahar, was also decided to allow Freeport exporting concentrates. But this time is different, Minister Ignasius Jonan strictly prohibit the export of concentrate without being processed and purified in smelter in the country.
(rnz)
