Government plans to transfer stake in PT Freeport to holding company

By Thomas Sembiring

The government is planning to transfer its 9.36 percent stake in gold and copper giant PT Freeport Indonesia to a planned new holding company.

This was said on Wednesday by Director General of Mineral and Coal at the Ministry of Energy and Mineral Resources Bambang Gatot Ariyono. He said that talks over the plan to transfer the PT Freeport shares has already been started with the Office of the State Minister of State Owned Enterprises.

The government is planning to set up a holding company for state-controlled firms engaged in the mining sector. Under the plan, state-owned aluminum maker PT Indonesia Asahan Aluminium (Inalum) will become the holding company, whose members including coal miner PT Bukit Asam Tbk, general mining firm PT Aneka Tambang Tbk, and tin miner PT Timah Tbk. The holding company is expected to be set up before the end of this year, State Minister of State Owned Enterprises Rini Somarno said last month.

PT Freeport, a subsidiary of US-based Freeport McMoRan Copper & Gold, is currently in the process of divesting 10.64 percent shares to Indonesian investors as part of its mandatory divestment program. The government and the company, however, have yet to reach agreement on the price of the shares. The government holds the top priory to acquire the shares.

Editing by Reiner Simanjuntak