Govt to Hold 51.23% of Freeports Shares by End of 2018: President Jokowi
Date 30 September 2018
Following the signing of Sales and Purchase Agreement (SPA) by Anglo-Australian mining giant Rio Tinto at Ministry of Energy and Mineral Resources Office, Jakarta, on Thursday (27/9), President Joko Jokowi Widodo expressed optimism that Indonesia will hold 51 percent of shares of mining company PT Freeport Indonesia (PTFI) by the end of 2018.
By the end of 2018, God willing, insyaallah, Indonesia through state-owned mining holding company PT Inalum will hold 51.23 percent of Freeport Indonesia shares, President Jokowi said in his Facebook account posted, Thursday (27/9).
The President explained that a number of agreements following the Head of Agreement (HoA) have been signed by Managing Director of PT Inalum Budi Gunadi Sadikin and President of Freeport McMoran Inc (FCX) Richard Adkerson yesterday.
The agreements are among others on: 1. PT Freeport Indonesia share divestment; 2. PT Rio Tinto Indonesia (PTRI) share sale and purchase; and 3. PT Freeport Indonesia shareholder.
Under the agreements, shares of Inalums 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 Indonesias share, President Jokowi added.
The change in share ownership, the President added, will officially be effective after a payment transaction of US$3.85 billion to FCX and will be completed before the end of 2018. I ensure that the whole process in Freeports share divestment will be completed in transparent manner, the President firmly said.
After share divestment is effective and Contract of Work is changed to a Special Mining Permit, President Jokowi expressed belief that Freeport will make great contribution to the country. (ES) (RAS/EP/Naster)