Indonesia: Freeport divestment to wrap up mid-July, says SOEs minister

  • State-owned Enterprises (SOEs) Minister Rini Soemarno hinted on 30 Jun 18 that state mining holding company Inalum’s purchase of shares in gold and copper miner PT Freeport Indonesia (PTFI) was expected to be completed by mid-July.
  • The purchase is expected to wrap up Freeport’s required divestment of 51% of its shares to Indonesian entities.
  • Energy and Mineral Resources Minister Ignasius Jonan said in Washington on 28 Jun 18 that the discussion between the government and Freeport McMoran, PTFI’s parent company, went beyond the value of the required divestment. The upcoming agreement deals with investment and operation progras such as a dividend policy through 2041. The Minister added that the details on these issues were discussed to avoid instability at Inalum and Freeport McMoran during the divestment process. Meanwhile, the agreement on investment commitment was expected to maintain business stability, particularly during the government’s policy change
  • For example, an agreement on tax and royalty is needed to anticipate changes in the issuance of new regulations

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