Newmont Shares Purchase Not in State Budget

TEMPO.CO, Jakarta - The government's plan to buy seven percent of Newmont Nusa Tenggara's shares may fail. According to Dolfie O.F. Palit of the House of Representatives (DPR) Finance Committee, the government did not include the Newmont shares purchase fund in the 2013 and 2014 State Budget Changes.

"If it is not listed in the budget, it will certainly not be executed this year," he said at the Parliament Complex in Senayan, Monday, July 1.

The central government and the provincial government of West Nusa Tenggara are equally interested in buying seven percent of Newmont shares worth US$246.8 million. The Finance Ministry wants the shares to fall into the hands of the central government; whereas the West Nusa Tenggara Governor wants the stake to be controlled by the local government.

The central government--through the Government Investment Center (PIP)--had made plans to buy the stake. But the plan was never actualized since the purchase requires the DPR's approval, which has yet been given.

Newmont has the obligation to divest seven percent of its shares. The company's current shareholders are Newmont Nusa Tenggara (49 percent), Pukuafu (17.8 percent) and Masbaga (2.2 percent). The remaining 24 percent belongs to Multi Daerah Bersaing, a joint venture between the government of West Nusa Tenggara and Bakrie Group's Multi Capital.

Finance Minister Chatib Basri said the government has yet to decide the particulars of the shares purchase. The minister asserted that the central government still has a chance to buy them.

"We will see what works best. The choices are for the shares to be purchased by the government, state-owned enterprises, or regional-owned enterprises," he said.

Mid last month, the Coordinating Minister for Economic Affairs Hatta Rajasa requested that Newmont's divested shares are given to local governments. "Let's not burden everything to the central [government]. Regional governments should also be given a piece so they would not protest," he said.

MARTHA THERTINA | ANGGA SUKMA WIJAYA | ARIE HARI WIBOWO | SUPRIYANTO KHAFID | DEWI RINA