Indonesia to Hold 51 Percent of Freeport Shares

By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation
Date 12 Juli 2018
Category: News
President Jokowi responds to reporters’ questions after attending an event at Indonesia Convention Exhibition (ICE) BSD, Tangerang, Banten, Thursday (12/7) (Photo: PR/Oji)

President Jokowi responds to reporters’ questions after attending an event at Indonesia Convention Exhibition (ICE) BSD, Tangerang, Banten, Thursday (12/7) (Photo: PR/Oji)

President Joko “Jokowi” Widodo announced that based on a report he had received, State-owned Mining Holding Company Inalum has reached an agreement with Freeport to increase ownership from 9.36 percent to 51 percent.

“Thank God, Alhamdulillah. The Government has been negotiating the ownership of PT Freeport Indonesia for 3.5 years; since 50 years ago, Indonesia’s ownership of Freeport is only 9.36 percent,” President Jokowi told the reporters after attending the Commemoration of 71st National Cooperatives Day 2018 and Dissemination of Final Income Tax (PPh) for Micro, Small, and Medium Enterprises (MSMEs) 0.5 Percent, at the Indonesia Convention Exhibition (ICE) BSD, Tangerang, Banten, Thursday (12/7).

“Don’t think it is easy, (negotiation) is very tough and intense, particularly in the last 1.5 years. Because it is not an easy matter to be negotiated,” the President said.

President Jokowi believes the successful in negotiation to increase the share of Indonesia’s shareholding of PT Freeport Indonesia to 51 percent is a leap. Indonesia is expected to get more income from taxes, royalty, dividend, and levy. Thus, value-added from mining industry can be enjoyed by all people.

“National interest must be priority, as for shares for Papuan people, you can ask the related ministers,” the President firmly said.

According to the related ministry, the Head of Agreement (HoA) regarding the share ownership of  PT Freeport Indonesia will be signed on Thursday (12/7) afternoon, in the Ministry of Finance’s office, Jakarta.

The signing is scheduled to be attended by Minister of Energy and Mineral Resources Ignasius Jonan, Minister of Finance Sri Mulyani Indrawati, Minister of State-owned Enterprises Rini Soemarno, representatives of PT Indonesia Asahan Aluminium (Inalum) and PT Freeport Indonesia. (DND/OJI/ES) (RAS/YM/Naster)

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