Freeport Divestment is Gov’t Remarkable Effort, Sri Mulyani Says

Minister of Finance Sri Mulyani witnesses the signing of divestment agreement of PT Freeport Indonesia, at the Ministry of Energy and Mineral Resources Office, Jakarta, Thursday (27/9).( Photo: Sri Mulyani Facebook account)

Divesting 51 percent of shares of mining company PT Freeport Indonesia (PTFI) from Freeport McMoRan Inc. (FCX) and Anglo-Australian mining giant Rio Tinto – which was completed by the signing of three agreements on Thursday (27/9) – is not easy, according to Minister of Finance Sri Mulyani Indrawati.

“I need to state that the whole process is a remarkable effort made by President Joko “Jokowi” Widodo, who instructed the Ministers, on behalf of the Government, to conduct the negotiation,” Sri Mulyani said in her Facebook account posted in Thursday (27/9).

“I know exactly what our intentions are and by making the efforts in transparent manner, we managed to make PT Freeport Indonesia operate for the benefits of all Indonesian citizens,” the Minister added.

Previously, Minister Sri Mulyani, Minister of Energy and Mineral Resources Ignasius Jonan, and Minister of State-owned Enterprises Rini Soemarno on Thursday (27/9) witnessed the signing of agreements on PT Freeport Indonesia share divestment, PT Rio Tinto Indonesia (PTRI) share sale and purchase, and PT Freeport Indonesia shareholders by representatives from state-owned mining holding company PT Inalum, Freeport McMoRan Inc. (FCX), and Rio Tinto

Under the agreements, shares of Inalum’s shareholding of PT Freeport Indonesia increases from 9.36 percent to 51.23 percent, while the Papua Regional Government will get 10 percent of PT Freeport Indonesia’s share. “The Indonesian Government through PT Inalum will hold 51 percent of Freeport Indonesia’s shares after all these years,” Sri Mulyani said.

In the meantime, Minister of Energy and Mineral Resources Ignasius Jonan said that after the signing of that agreements, the finalization of Freeport’s 51 percent share divestment is targeted to be completed by the end of this month. “The change in share ownership will officially be effective after a payment transaction of US$3.85 billion, equivalent to Rp56 trillion, to FCX and will be completed before the end of this year” Jonan added.

Also on that occasion, Managing Director of PT Inalum Budi Gunadi Sadikin said that transfer payments of Freeport divestment is derived from a syndicate of banks. “The funds will be available by the end of this month. We also expect that all regulatory documents and permits required will be completed at the same time,” Budi concluded. (ES) (RAS/EP/Naster)