Indonesian SOEs Ready for Acquire 51 Percent Stake in Freeport
Indonesian SOEs Ready for Acquire 51 Percent Stake in Freeport
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JAKARTA - Government confidence will be able to acquire a 51 percent stake in PT Freeport Indonesia.
"If the state-run enterprises are tasked with acquiring shares in PT Freeport divestment, we will be ready. Now we have to wait for the valuation process," State Owned Enterprises (SOEs) Minister, Rini Soemarno said in Jakarta on Friday (10/3).
Before the divestment, she said, the government and US mining firm should finalize their negotiation on the contract.
"Technically, the divestment process would be handled by the Energy and Mineral Resource Ministry. After it is finished, state-run enterprises would be ready to buy 51 percent of Freeport shares," she added.
The establishment of a holding company for state-run mining firms-PT Inalum, Bukit Asam, Aneka Tambang and Timah-which is expected to be finalized in 2017, would support the divestment.
"With this holding company in mining, Inalum will get support from three other state-run firms," Rini said.
The government has asked PT Freeport to change its status from a Contract of Work (CoW) to a special mining license (IUPK), under the government regulation No.1/2017 on mineral and coal mining.
As a consequence, PT Freeport is required to divest 51 percent of its shares. Responding to the demand, the U.S.-based firm has threatened to bring the case under international arbitration.
"If the state-run enterprises are tasked with acquiring shares in PT Freeport divestment, we will be ready. Now we have to wait for the valuation process," State Owned Enterprises (SOEs) Minister, Rini Soemarno said in Jakarta on Friday (10/3).
Before the divestment, she said, the government and US mining firm should finalize their negotiation on the contract.
"Technically, the divestment process would be handled by the Energy and Mineral Resource Ministry. After it is finished, state-run enterprises would be ready to buy 51 percent of Freeport shares," she added.
The establishment of a holding company for state-run mining firms-PT Inalum, Bukit Asam, Aneka Tambang and Timah-which is expected to be finalized in 2017, would support the divestment.
"With this holding company in mining, Inalum will get support from three other state-run firms," Rini said.
The government has asked PT Freeport to change its status from a Contract of Work (CoW) to a special mining license (IUPK), under the government regulation No.1/2017 on mineral and coal mining.
As a consequence, PT Freeport is required to divest 51 percent of its shares. Responding to the demand, the U.S.-based firm has threatened to bring the case under international arbitration.
(rnz)
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