Indonesia - Freeport Negotiation to Be Finalized

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  • Freeport gold mine, Indonesia. TEMPO/Rully Kesuma

    Freeport gold mine, Indonesia. TEMPO/Rully Kesuma

    TEMPO.CO, Jakarta - Energy and Human Resources Minister Ignasius Jonan revealed that the negotiation between the government and mining giant Freeport Indonesia has entered its final phase. Topics discussed in the negotiation held last month centered on taxation and regional retribution.

    Jonan claimed that the issues with smelter construction and divestment have been addressed. According to Jonan, Freeport Indonesia has agreed to divest 51 percent of its shares and will only deal with the final phase of the negotiation.

    Read: Freeport to Issue New shares for Divestment Requirements

    The Ministry previously said that Freeport will issue a new stock in the divestment process, which will be bought by the government in order to acquire Freeport Indonesia’s majority share.

    The Indonesian government currently own 9.36 percent of the shares, which means that they need to buy 41 percent of Freeport’s shares to reach the goal.