Minister: Freeport divestment must be completed in 2019
Thursday, September 14 2017 - 01:29 AM WIB
Coordinating Minister for Maritime Affairs Luhut Binsar Panjaitan, who also oversees the Ministry of Energy and Mineral Resources, said that PT Freeport Indonesia?s obligation to divest up to 51 percent shares to Indonesian investors must be completed in 2019.
?Freeport (Indonesia) will divest up to 51 percent shares to Indonesian (investors), we must complete this in 2019,? Luhut said on Wednesday during a gathering with the media.
He said that the central government is currently discussing with the regional government of Papua Province over division of shares in PT Freeport. He said that there?s possibility of Papua administration to get 5-10 percent shares in PT Freeport.
Luhut said that independent valuators, each appointed by the government and the company, will be assigned to estimate the value of the PT Freeport shares.
He said that by owning 51 percent shares in PT Freeport, Indonesia will hold control over the company.
US Freeport McMoRan Inc, the parent of PT Freeport, however, said in a statement late last month that the divestment program will be structured in such way that Freeport will retain control over operations and governance.
The government of Indonesia currently owns 9.36 percent share sin PT Freeport, which means the company will have to divest another 41.64 percent shares to Indonesian investors. The government has said it would assign state-owned enterprises to acquire the PT Freeport shares. (*)