Gov’t to Hold 51.23% of Freeport’s Shares by End of 2018: President Jokowi

By Humas
Date 30 September 2018
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President Jokowi accompanied by Vice President Jusuf Kalla responds to reporters’ questions at the State Palace, Jakarta. ( Photo: Cabinet Secretariat’s PR Division)

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 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,” 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 Freeport’s 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)

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