Freeport offers 10 percent stake to government

Mining giant PT Feeport has offered US$619 million worth shares or 10 percent stake to the government, but the government has not yet responded so far, the Investor Daily Indonesia newspaper reported in its Friday edition.

This issue was one of the main issues discussed during a meeting between the House of Representatives? Commission XI and the Minister of Finance in Jakarta on Thursday.

House member Dradjad Wibowo argued the Freeport shares could become a source of state revenue in the long term. He thus questioned the reason why goverment did not take the offer

The offer is in line with Freeport's contract with the government, under which the firm had to divest its shares to the Indonesian government or companies.

Minister of Finance Jusuf Anwar said the government had so far no plan to buy any companies. In fact, it is selling its assets in the micro sector.

Jusuf said he has not yet received the Freeport offer. ?It (offer) has not reached my table. But why do we have to buy a company, while we are privatizing some. The government should not play much in the micro sector,? Jusuf said.(*)