Indonesian govt to buy Freeport shares immediately

Jakarta (ANTARA News) – The Indonesian government wishes to buy shares of PT Freeport Indonesia immediately up to 51 percent to meet Government Regulation Number 1, 2017.

“We wish to immediately buy Freeport shares. Do not we have a mining holding company. 9.36 percent will go to the mining holding company,” deputy for strategic industry mining business and media of the ministry of state enterprises, Fajar Harry Sampurno, said to Antara here on Tuesday evening.

In line with the regulation purchase of shares will be done in stages up to 51 percent and it will be carried out through the mining holding company.

“We are waiting for the governments instruction. If state company is given an order to by we will do it,” he said.

PT Freeport Indonesia has already applied for a change of status from working contract (KK) to a special mining business permit (IUPK) status however conditions still have yet to be met.

The ministry of energy and mineral resources have explained about several important points regarding Government Regulation No.1 of 2017 on the fourth change on Government Regulation Number 23/2010 on the implementation of coal and minerals mining business activities.

Minister of energy and mineral resources Ignasius Jonan said the change would give an optimal benefit to the state and legal as well as business certainty to holders of Production Operation IUP (mining permits), IUPK Production Operation, KK and Working Agreement for Coal Mining Industry.

The important points in Government Regulation No.1/2017 is firstly the change in the period for applying IUP/IUPK which is five years at the earliest before the expiration of the permits.

Secondly it is the change of regulation on share divestment which is to reach 51 percent in stages. “The share purchase could be done by state-owned companies or regional government-owned companies as the aim is to nationalize ownership,” Jonan said.

Thirdly, he said, it is regulation about reference price for sales of minerals and coal. “It will the government that will decide the price,” he said.

Fourthly it is revocation of a regulation that only working contract holders that have carried out processing are allowed to conduct sales of their processing results in the fixed amount and time.

Fifthly, further regulation will be issued regarding on ways of increasing added value and metal minerals sales through processing activities and metal mineral refining as referred to in Law Number 4/2009 on coal and minerals mining.

Source: Antara News