TEMPO.CO, Jakarta - State-owned mining holding company INALUM has announced the financial backing to acquire 51 percent of Freeport Indonesia’s shares will be funded by foreign banks so as not to disrupt the rupiah echange rate.
“We do not want to affect the rupiah’s conversion because the transaction will be conducted overseas utilizing US dollars. INALUM and Freeport Indonesia’s income are in dollars, which is why it will not disrupt the exchange rate of the rupiah,” said INALUM head of corporate communications Rendi Ahmad Witular today.
However, Rendi stopped short of pinpointing which foreign banks would be invloved in the funding.
Read: State Banks Unenthusiastic to Finance Freeport Acquisition
Earlier, the head of the Association of State-Owned Banks (Himbara), Maryono, said four state-owned banks would not participate in funding INALUM. He added that the funding would possibly be done by privately-owned or foreign banks.
“Yes, the reason is to flow cash into Indonesia from other countries that will increase our foreign exchange,” said Maryono.
On Thursday, July 12, the Indonesian government represented by INALUM ratified the head of agreement for Freeport McMoran Inc share sales and the participation rights for Rio Tinto in Freeport Indonesia to INALUM.
KARTIKA ANGGRAENI
