Discussion On Freeport Share Divestment Still Ongoing, Bahlil Targets October Village

JAKARTA - Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia revealed that the discussion on additional share divestment of PT Freeport Indonesia is still ongoing today. He targets this discussion to be completed in October with the amount of shares above 10 percent.

"Now these stages are what we are doing now. Later when they are finished, I plan maybe in early October, then we will finalize with Freeport," Bahlil told the media crew, Friday, September 26.

Bahlil also emphasized that he had met with holders at Freeport-McMoRan Inc and Freeport Indonesia to discuss the extension of PTFI's special mining business permit (IUPK) after 2041.

Just so you know, this additional share divestment is a requirement for the extension of PTFI's IUPK.

Later, the shares will enter Indonesia through the MIND ID mining holding and some will be handed over to Regional Owned Enterprises (BUMD) in Papua.

Regarding the additional share price, Bahlil ensured that it would be done at the lowest price, even at no cost or free.

"There is no valuation value, so it is very small. I ask that it must be given the cheapest number to the government, in this case the BUMD Papua and MIND ID," said Bahlil.

According to Bahlil, the saham and the IUPK extension is necessary immediately considering that PTFI's production is predicted to reach its peak production by 2035.

Dia menilai, hal ini dibutuhkan untuk memberikan kepastian kepada pemerintah dan Freeport terkait eksplorasi masih bisa dilanjutkan untuk mempertebal cadangan Freeport.

“Kalau tidak segera kita perpanjang, maka puncak produksi daripada Freeport ini itu di 2035. Begitu di 2035 dia akan menurun. Begitu dia akan menurun, dampaknya kepada produktivitas dari para perusahaan dan juga pendapatan negara, lapangan pekerjaan, dan juga ekonomi di daerah dan nasional,” tandas Bahlil.

He considered that this was needed to provide certainty to the government and Freeport regarding exploration could still be continued to strengthen Freeport reserves.

"If we don't extend it immediately, then the peak production of Freeport will be in 2035. Once in 2035 it will decrease. Once it will decrease, the impact will be on the productivity of the company as well as state income, employment opportunities, as well as the economy in the region and nationally," said Bahlil.