Freeport told to increase dividend payout to 50% of profit

A member of the House of Representatives (DPR), Cecep Rukmana, has asked giant gold mining company PT Freeport Indonesia to increase its dividend payout ratio to up to 50 percent of its net profit this year so that the government will higher amount of dividend from the company, Investors Daily reported on Friday.

"The proposed 50 percent dividend payout ratio is quite rational given the fact that the company will no longer need high investment to carry out exploration activities," Cecep was quoted as saying.

According to him, the government as a shareholder in the company has the right to ask for a larger dividend payment. "But the proposal should be approved by the company's shareholders," he said, adding that the dividend paid by Freeport was only about 15 percent of profit in 2001 and 2003.

At present, New Orleans-based Freeport McMoran Copper&Gold Inc. owns around 83 percent shares in PT Freeport. PT Indocopper Investama and the government of Indonesia each owns around 9 percent stake.

The government received dividend of about US$ 5 million in 2000 and US$4.49 million in 2001, said the Investor Daily. (*)