Freeport Might Provide Govt with More Shares for Contract Renewal

TEMPO.CO, Jakarta - Indonesian Resources Studies executive director Marwan Batubara said that Indonesia must be able to gain more benefits from Freeport Indonesia’s contract renewal.

“There must be a scheme that provides more benefits for Indonesia,” Marwan told Tempo on Saturday, October 17, 2015.

According to Marwan, Freeport’s contract renewal issue will have to impacts. First, the government would violate its own rules if Freeport’s contract was to be terminated. On the other hand, state revenue and job opportunity would be improved if the contract was to be extended.

Marwan added that Freeport must provide the government with more shares at around 51 percent if Freeport wanted to extend its business license. Therefore, Marwan added, the government would have more authority manage Freeport Indonesia.

“We cannot manage Freeport because we don’t have a significant amount of share,” Marwan said.

Currently, Indonesia owns only 9.3 percent of shares at PT Freeport Indonesia. According to Marwan, the government cannot assign its representative to manage Freeport Indonesia with such a small share ownership.

“At least we need to have 30 percent of Freeport’s shares, so that we can assign two or three directors to manage the company,” Marwan said.

Earlier, PT Freeport Indonesia offered US$18 billion worth of contract extension until 2021 to the government. Energy and Mineral Resources Minister Sudirman Said revealed on October 14, 2015, that the government and PT Freeport had agreed to continue their cooperation.

ARIEF HIDAYAT