Ownership of Freeport Majority Shares is for Benefit of Indonesians: President Jokowi

President Jokowi accompanied by a number of ministries and CEO of Freeport announces the finalization of Freeport Indonesia’s divestment, at the Merdeka Palace, Jakarta, Friday (21/12). (Photo by: IST)

President Joko “Jokowi” Widodo announced on Friday that the Government of Indonesia, through state-owned mining holding company PT Inalum, now holds 51.2 percent of share of mining company PT Freeport Indonesia and the payment for share divestment is already completed.

“Today is a historical moment since Freeport began operating in Indonesia in 1973,” President Jokowi said in a press statement at the Merdeka Palace, Jakarta, Friday (21/12).

The President went on to say that the majority ownership would be entirely for the benefit of Indonesian people. By owning 51 percent of share, President Jokowi expressed belief that Indonesia’s income in tax, and royalties will be bigger and better.

The Head of State also said that smelter development and solutions to environmental issues have been settled. He added that everything has been completed and now all that is left is the work.

Regarding share for regional government of Papua, President Jokowi explained that 10 percent ownership of Freeport Indonesia shares would go to Papua’s people.

For the record, PT Inalum bought some of Freeport McMoRan Inc. (FCX) shares and Rio Tinto participating interest with the closure of a US$3.85 billion deal, increasing Inalum’s ownership from 9.36 percent to 51.23 percent.

“The ownership of 51.23 percent consists of 41.23 percent of Inalum share and 10 percent of regional government of Papua’s share. Share of regional government of Papua will be managed by Papuan metal and mineral company PT Indonesia Papua Metal dan Mineral (IPPM) in which its shares are owned by PT Inalum (60 percent), and Papuan provincial administration-owned enterprises (40 percent),” press release of Ministry of Energy and Mineral Resources on Friday (21/12) reads. (*/ANT/ES)

Translated by : Rany Anjany Subachrum
Edited by : M. Ersan Pamungkas