NEWS

MEMR Ensures that Freeport Indonesia Divestment will be complete by 2041

Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif confirmed that the divestment process or divestment of PT Freeport Indonesia (PTFI) shares will only be carried out in 2041. Arifin ensured that the negotiations were still ongoing.

“There is a definite plan for another percent of the divestment, so that will be given when a decision has been made for us (permit extension). Now the administration is being taken care of, in line with that the negotiations are ongoing,” Arifin said when met at the Ministry of Energy and Mineral Resources, Wednesday (31/ 5).

Arifin explained that the government is currently still preparing regulations regarding the issuance of contract extension permits for Freeport Indonesia. Previously, it was reported that the Government of Indonesia intended to add a 10% stake in PTFI. Responding to this, Arifin emphasized that the new divestment will take place in 2041.

“Later in 2041. (The amount of 10%) is currently being negotiated with a note that we will also see further downstream developments,” explained Arifin. Arifin explained that this divestment would not be carried out for free. This is because the government also needs to recalculate the amount of investment PTFI has made in the last 10 years.

However, Arifin also reminded that the Indonesian government has also been investing through ownership of 51% shares through MIND ID. “We also take part in the exploration costs, yes, but if it’s an addition, what will be the valuation later,” Arifin added.

Arifin continued, referring to the existing conditions, the license extension could be granted for a duration of 2X10 years. Under these conditions, PTFI has the potential to obtain a permit extension until 2061.

 

Source: https://industri.kontan.co.id/news/menteri-esdm-pastikan-divestasi-freeport-indonesia-baru-akan-dilakukan-pada-2041

Image Source: industri.kontan.co.id