Govt Asks Antam to Buy 10% Share in Freeport

TEMPO.CO, Jakarta – State-owned Enterprises Minister Rini Soemarno has ordered state miner PT Aneka Tambang Tbk. (IDX: ANTM), to acquire a 10 percent stake in PT Freeport Indonesia this year. This request is associated with the government's government capital injection of Rp7 trillion to the company known as Antam.

Antam is proposed to obtain the largest share of state capital participation (PMN), so that the company would be able to hold a rights issue and strengthen its capital. The rights issue proceeds will be used as a funding source for the company's expansions and the construction of mineral smelters.

Antam president director Tato Miraza said the company still focuses on the PMN discussion and the implementation of three ongoing projects, namely the construction of a ferronickel plant in East Halmahera worth US$1.6 billion, an anode slime project worth US$40 million, and a US$1.7-billion smelter grade alumina project in Mempawah.

Freeport Indonesia, the subsidiary of US-based Freeport-McMoRan Inc., has stated its plan to divest 10 percent stake to Indonesia before October this year. Freeport Indonesia president director Maroef Sjamsuddin said that the company is ready to comply with the Indonesian government's provisions in the divestment. 

"Right now, 9.36 percent of Freeport Indonesia is owned by the Indonesian government," he said last week. 

AIZ NASHRILLAH | BERNADETTE CHRISTINA MUNTHE