TEMPO.CO, Jakarta - Coordinating Minister for Maritime Affairs Luhut Binsar Pandjaitan said that the government continues to conduct legal finalization with Freeport in relation to the company's contract of work (CoW) through the Energy and Mineral Resources Minister.
One of the discussed issues between both parties was shares. Luhut wanted that if Freeport decided to extend its contract, the company must divest 51 percent of its shares to the Indonesian government. Out the 51 percent, as many as five percent will be handed over to the Papuan government to improve the Papuan people welfare.
"If we have 51 percent shares, Freeport has 49 percent. Indonesian will lead, and Papua, as the President requested, will have five percent for the people and local government. It will be for education, and farming," Luhut said on Friday, March 24, 2017.
Luhut asserted that Freeport should be considered as someone who rented a house in Indonesia. Luhut said that if the company wishes to extend its nearly expired contract, they should comply with the government’s regulation, including the Government Regulation No. 1 of 2017 on the Fourth Amendment of Government Regulation No. 23 of 2010 on Mineral and Coal Mining.
Luhut added that recently, the Executive Director of Freeport Tony Wenas had met him to discuss the CoW extension.
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