Govt Allocates US$3.85bn for 51% Stake in Freeport Indonesia  

Translator

Editor

Kamis, 1 Januari 1970 07:00 WIB

Indonesia's Energy and Mineral Resources Minister Ignasius Jonan (L) and Indonesia's Finance Minister Sri Mulyani Indrawati (C) watch as Freeport-McMoRan Chief Executive Officer Richard Adkerson and PT Inalum Chief Executive Budi Gunadi Sadikin exchanges document of an initial agreement for the state-owned mining company PT Inalum to take a controlling stake in Freeport's local unit during a ceremony in Jakarta, Indonesia, July 12, 2018. Tempo/Tony Hartawan

TEMPO.CO, Jakarta - The government through Indonesia Asahan Alumunium (Inalum) will allocate US$3.85 billion to buy shares of Freeport Indonesia (PTFI). With the purchase, the government will be the majority shareholder in the US-based miner with 51 percent stake.


Inalum, PTFI, and Rio Tinto signed the head of agreement (HoA). Inalum will buy shares from Freeport McMoran (FCX) and participating interest (PI) rights from Rio Tinto at PTFI.


SOE Minister Rini Soemarno said on Thursday, July 12, that Inalum is taking over the PI from Rio Tinto and 100 percent from Indocopper.


"Added to the government's owned shares, the total stake would be 51.38 percent. The total value with the interest-takeover from Rio Tinto and Indocopper is US$3.85 billion," the minister said.


Inalum's 51 percent ownership in Freeport Indonesia will be actualized over the next discussion, Rini added. Right now, nothing has materialized yet as only a head of agreement has been signed to "lock prices" before negotiations can proceed to be finalized as a joint venture agreement.


Rini added that the negotiation will likely take place two months from now.


MUHAMMAD HENDARTYO

Related News

Indonesia`s Startup Investment at Rp39.8 tn  

14 Desember 2018

Indonesia`s Startup Investment at Rp39.8 tn  

A joint-research by Google and AT Kearney shows that investments in
Indonesia's startups have grown 68 times in the last five years

Read More

Jokowi Keeps Low Profile on Social Media  

14 Desember 2018

Jokowi Keeps Low Profile on Social Media  

President Joko Widodo or Jokowi once again mentioned the use of social
media during his speech at the Indonesia Business and Development Expo
2017

Read More

International Coffee Day: Solo to Give 5,000 Cups of Free Coffee  

14 Desember 2018

International Coffee Day: Solo to Give 5,000 Cups of Free Coffee  

Harjonagoro Traditional Market in Solo is preparing 5,000 cups
of coffee to be given out for free at the International Coffee
Day event, Oct. 1.

Read More

Ed Sheeran Cancels Jakarta Concert  

14 Desember 2018

Ed Sheeran Cancels Jakarta Concert  

Singer Ed Sheeran has canceled his concerts in Jakarta and
other Asian cities following a bike accident.

Read More

Halal Thai Restaurant in Bali  

14 Desember 2018

Halal Thai Restaurant in Bali  

Som Chai in Seminyak, Bali, can be considered to be one of
Bali`s Thai restaurants that serve several halal menus.

Read More

Top 5 Indonesian Athletes in 2018 Asian Para Games  

14 Desember 2018

Top 5 Indonesian Athletes in 2018 Asian Para Games  

Indonesia is targeting the top-seven rank in the Asian Para
Games 2018.

Read More

S. Sumatra Plans Restoration of Hundreds of Hectares of Peat Land

14 Desember 2018

S. Sumatra Plans Restoration of Hundreds of Hectares of Peat Land

Peat land restoration would cover around 594,231 hectares in
South Sumatra this year to preserve the environment, a
government official said.

Read More

Sperm Whale Ingested Plastic Waste; Serious Solution Required

14 Desember 2018

Sperm Whale Ingested Plastic Waste; Serious Solution Required

It is estimated 94 percent of plastic waste that enters the
ocean ends up on the seafloor, which threats the lives of
ocean`s creatures.

Read More

Roy Marten: Jokowi Leads Indonesia, Ahok Leads Jakarta

24 Oktober 2018

Roy Marten: Jokowi Leads Indonesia, Ahok Leads Jakarta

Actor Roy Marten relentlessly promotes Jokowi for President,
saying that the society had already shown enormous
supports.

Read More

Ousted Casillas Speaks of Triumph over Juventus

24 Oktober 2018

Ousted Casillas Speaks of Triumph over Juventus

The Blancos faces Champions League Top 16, needing only six
points to secure the round.

Read More