Government to set up team to appraise Freeport shares

The Ministry of Energy and Mineral Resources (MEMR), Ministry of Finance, and the Office of the Coordinating Minister for Economic Affairs will set up a joint team that would appraise the shares and assets of gold and copper giant PT Freeport Indonesia.

Director General of Mineral and Coal at MEMR, Bambang Gatot Ariyono said Thursday that the team will comprise of competent people from the three ministries.

He added that the team would be set up once PT Freeport has made an offer to the government the shares to be divested by the firm.

Freeport is obliged to divest 10.64 percent shares to Indonesian investors this year, with the first offer to be made to the Indonesian government. The company has been given 90 days ending January 14, 2016 to make the offer.

After the company makes the offer, the central government has 90 days to decide whether to take the offer or not. If the government declines to take up the offer, the shares will be offered to state-owned enterprises, and the next priority is the Papua provincial administration, and finally Indonesian private sector. (*)