Consultant to review Freeport share price offer

The government will seek the help of an independent consultant to review the PT Freeport Indonesia share price offer in a bid to help accelerate the share divestment process of the giant gold and copper mining company.

Director General of Mineral and Coal Bambang Gatot Ariyono said on Monday that the assessment result of the independent consultant would be compared with the review made by the government?s special team.

?The appointment of the independent consultant will be made by the special team. We want to have a price benchmark to help accelerate the divestment process,? Bambang said.

PT Freeport, a local subsidiary of US-based Freeport McMoRan Copper & Gold Inc, last week offered to the government its 10.64 percent shares to meet a mandatory divestment program. The company assigns a US$1.7 billion price tag for the 10.64 percent shares, which some said is too expensive.

Meanwhile, the government special team tasked with reviewing the PT Freeport share price offer, comprising of experts from the Ministry of Energy and Mineral Resources, Ministry of Finance, Investment Coordinating Board, Office of the Coordinating Minister for the Economy, and State Finance and Development Supervisory Agency (BPKP), began their first meeting on Monday, discussing among others the review mechanism.

The government is expected to response to the PT Freeport share price offer within 60 days since the company made the offer on January 14, 2016. (*)