Papua demands 10-20% stake in PT Freeport

The Mimika regency administration in Papua has demanded for the government to allocate 10-20 percent stake in gold and copper giant PT Freeport Indonesia for the regency administration, the provincial administration and local tribes, Kontan reported on Wednesday.

Mimika Regent Oltinus Omaleng met with Coordinating Minister for Maritime Affairs Luhut Panjaitan on Tuesday to express the demand, after meeting with Minister of Energy and Mineral Resources Ignasius Jonan on Monday. Luhut oversees the latter ministry.

According to government regulation, PT Freeport, a subsidiary of US-based Freeport McMoRan Inc, which operates the giant Grasberg gold mine in Mimika, Papua, is required to divest a total of 51 percent shares to Indonesian investors. As the Indonesian government already have 9.36 percent shares, PT Freeport is required divest another 41.64 percent shares.

Luhut said that the government has approved the request of the Papua administration for shares in PT Freeport, but has yet to decide on the size of stake to be allocated for the province. (*)