VOI - Voice of Indonesia | RRI - Radio Republik Indonesia

The Indonesian government through PT Inalum officially controls 51 percent of PT Freeport Indonesia (PTFI) shares. The agreement was signed by PT Inalum as the parent of the State-Owned Enterprises (BUMN) mine and Freeport Mcmoran Inc. in Jakarta on last Thursday (27/9). The signing of the sales and purchasing agreement is a follow-up of the preliminary agreement on July 7, 2018, when it was agreed that the value of the Freeport Indonesia divestment shares would be US$3.85 billion dollars or around Rp 56 trillion. In detail, US$3.5 billion dollars is to buy a participating interest (PI) 40 percent owned by Rio Tinto and US$350 million dollars to acquire 9.3 percent of shares owned by Indocopper Investama. The signing was carried out by INALUM's President Director, Budi G. Sadikin, and Freeport-McMoRan CEO, Richard Adkerson, witnessed by Energy and Mineral Resources (ESDM) Minister, Ignasius Jonan, Minister of State-Owned Enterprises (BUMN), Rini Soemarno, and Finance Minister, Sri Mulyani Indrawati. Thus, the number of PTFI shares owned by INALUM increases from 9.36 percent to 51.23 percent. The Papua Regional Government will get 10 percent of 100 percent of PTFI's shares. Minister Ignasius Jonan explained that with the signing of this agreement, the government would issue a Special Mining Business License with a maximum operating period of 2x10 years until 2041. Furthermore, PTFI's obligation to build a copper smelter with a capacity of 2 to 2.6 million tons per year would keep being monitored and evaluated for its development. So, it is expected to be completed in less than 5 years. Meanwhile, Minister of Finance, Sri Mulyani Indrawati admitted that the divestment of shares between PT Freeport Indonesia and the Indonesian Government was complicated and it required a very long process.

"I know that this process is not easy; there are many negotiating details that I have to admit. The process is equally complicated. However, with the good intentions of the Government of Indonesia and with guidance from Mrs. Rini to PT Inalum and with Richard Adkerson leadership, we have finally been able to fulfill and reach an agreement to take over 51 percent of the shares signed today in the form of a Sales Purchase Agreement. We also continue to finish and are at the final stage. Once again, the process is not easy, said ministerSri Mulyani "

Minister Sri Mulyani further explained that the divestment of PT Freeport Indonesia's shares this time is a commitment of Indonesia to fight for the best, both in terms of state revenues, downstream processing through the construction of smelters and management. In addition, she also stated that the government of Indonesia fully respects the rights of investors who come to Indonesia by negotiating, which then resulted in decisions that benefit all parties concerned. Minister Sri Mulyani also hopes that PT Freeport Indonesia will carry out mining activities in the future by continuing to consider environmental aspects. She also expressed her gratitude to the CEO of Freeport-McMoRan, Richard Adkerson who has negotiated well so far with the government of Indonesia.