TEMPO.CO, Jakarta - Indonesian Vice President Jusuf Kalla is optimistic that the Indonesian Government’s Head of Agreement (HoA) with Freeport McMoran will advance. “The name itself suggests that it is the header, so the principle of this agreement has been agreed upon. It’s a matter of producing the details,” said Jusuf Kalla yesterday at his office.

Universitas Indonesia’s International law Professor Hikmanto Juwana previously stated that the HoA needs to be positively welcomed even though he said that there are several key elements to note regarding the deal.

Hikmanto reminded that the HoA between the government and Freeport should not be perceived as a victory for Indonesia, and definitely should not turn into a premature euphoria. He says that from the perspective of law Hikmanto explained that the HoA is not a stock trading agreement since it only governs principle elements.

Responding to the professor’s opinion, Jusuf Kalla said that the HoA will be followed by another deal that automatically has Indonesia extending Freeport Indonesia’s concession. “Indonesia will have the right to extend and purchase,” said Jusuf Kalla.

Furthermore, Jusuf Kalla said that the government would need to take foreign funding into the country. He says that the banks that are prepared to fund the divestment do not doubt the performance of Freeport’s gold mine.

BISNIS.COM