TEMPO.CO, Jakarta - Coordinating Minister for Maritime Affairs Luhut Binsar Pandjaitan acknowledged the points contained in the Head of Agreement (HoA) between Freeport-Mcmoran Inc (FCX) and PT Indonesia Asahan Aluminum (Inalum) as a form of commitment. He remarked that such HOA between mining companies from the United States and the Indonesian government was a positive step after going through a lengthy process.

Although several parties assess that the HoA does not have a legal binding force, Luhut believed the HoA is still necessary as an important business commitment.

"Now it is a good thing. There is no problem anymore, and the fuss is not clear. It is normal for you to have a fiancé, but it is impossible for your fiancé to break up," he stated at his office on Friday.

The former coordinating minister for political and security affairs also made assurance that the principal of the agreement will be able to run smoothly without any problems. He believed that Freeport will also not risk its credibility in doing business.

"Yes, they are also suffering, as if they play the stocks, they will not want their stocks to go down. If they do not want to go down, do not make a fuss," he noted.

The divestment of PT Freeport Indonesia's (PT FI's) shares was achieved through the signing of the HoA between Freeport-Mcmoran Inc (FCX) and Inalum.

Inalum, FCX, and Rio Tinto have signed the Principal Agreement on the sale of FCX shares and Rio Tinto's participatory rights at PT FI to Inalum.

Inalum's ownership in PT FI after the sale of shares and rights was 51 percent, from 9.36 percent.

Under the agreement, Inalum will spend US$3.85 billion to buy Rio Tinto's participation rights in PT FI and 100 percent of FCX shares in PT Indocopper Investama, which owns a 9.36 percent stake in PT FI.

The parties will complete this sale and purchase agreement before the end of 2018.

ANTARA