Altered Stock Regulations, Freeport Divestment Continues

TEMPO.CO, Jakarta - The government vows to immediately resolve the new regulations related to the stock release for mining permit holders.  Secretary General of the Energy and Mineral Resource Ministry Teguh Pamudji say although the regulation will be issued, the divestment implementation of PT Freeport Indonesia will still continue.

“It is mandatory.  This will not disturb the ongoing divestment process,” Tegud said on Friday, Sept 25.

The Ministerial Decree draft which is currently a new divestment legal protection will be issued in the near future.  The formulation will be waiting for the revision approval of PP 77 Year 2014 on Mineral and Coal Mining Business Activity Implementation, as the main regulation.

Teguh was reluctant to comment on the related substance for this special regulation.  He confirmed that the new regulation on the mandatory divestment will be more complete thus guaranteeing legal certainty.

Freeport will be releasing 10.64 percent of its shares next month.  If the divestment runs well, this will mean that 20 percent of Freeport’s share will be owned by Indonesia this year.

Freeport CEO Maroef Sjamsuddin say the company is ready to release 30 percent of its shares gradually until October 2019.  The divestment will be done through an exchange with Initial Public Offering (IPO) schematic, Maroef said in front of Commission VII parliament.

Until now, the acquisition of Freeport shares by the government is still unclear.  Previously, Energy and Mineral Resource Minister Sudirman Said signals to back down from the process.

ROBBY IRFANY