Richard Adkerson Satisfied with Freeport Divestment Deal

TEMPO.CO, Jakarta - Freeport McMoRan Inc. CEO Richard Adkerson said that the company has finally reached a win-win solution with the Indonesian government through Freeport`s 51.23 percent share divestment to state-run Indonesia Asahan Alumunium (Inalum). 

Adkerson said that the divestment ended on a high note following a lengthy negotiation that both his company and the Indonesian government had performed in the past few years. “We are happy,” he said at the Energy and Mineral Resources Ministry (ESDM) headquarters on Thursday.

Inalum, Freeport McMoran Inc., and Rio Tinto Indonesia signed the sales and purchase agreement (SPA) Thursday, September 27. The signing, represented by Richard Adkerson himself and Inalum CEO Budi Gunadi, marked that the divestment is official.

Read: Inalum Officially Take Over 51 Percent of Freeport Share 

Three state ministers present to witness the ratification were ESDM Minister Ignasius Jonan, State Owned Enterprises Minister Rini Soemarno, and Finance Minister Sri Mulyani. The SPA is a direct follow up to the previous head of agreement (HoA) that was signed by Inalum and Freeport McMoran Inc. on July 7, 2018.

The HoA signing saw everyone agree on Freeport Indonesia’s divestment value of US$3.85 billion. The figure divided from US$3.5 billion of Rio Tinto's participating interest (PI) at 40 percent shares in Freeport Indonesia and US$350 million for the 5.6 percent stake of Indocopper Investama, which were owned by Freeport McMoran Inc.

Richard Adkerson considered it a win-win solution since every party gets equal assurance with the Indonesian government reaching its goal of controlling the majority share and a guarantee for the continuity of Freeport by partnering with Inalum.  

FAJAR PEBRIANTO