Govt drafting regulation on share divestment

By Adianto P. Simamora

Ministry of Energy and Mineral Resources said that the office is currently drafting a ministerial regulation on share divestment process to implement the newly-issued Government Regulation Number 24/2012 which requires foreign-owned mines to gradually divest up to 51 percent stakes to Indonesian companies between 5 to 10 years after commercial operation date.

?We hope to issue ministerial regulation on share divestment before the year?s end,? Fadli Ibrahim, head of legal division at the ministry?s directorate general of mineral and coal affair said.

Article 3 of the draft says the share divestment would be made through direct offering and auction.

The direct offering of share divestment would be aimed only for the central government and local administration, while the auction would be made for state-owned enterprises (BUMN) and regional administration-owned enterprises (BUMD).

The ministry would be posting the draft in order to gather inputs from public.

Editing by David Mustakim