Bahlil Calls Freeport Share Ownership To 61 Percent Encourage People's Welfare

Investment Minister Bahlil Lahadalia (Photo: Aris Nurjani/VOI)

JAKARTA - Investment Minister/Head of the Investment Coordinating Board, Bahlil Lahadalia, confirmed that the process of extending Freeport contract mining activities will operate until 2061 and increase shares by 10 percent of shares with a total stake of 61 percent owned by Indonesia.

Bahlil alluded to the PT Freeport's business license which will expire in 2041 and, the government is planning to extend Freeport until 2061 by increasing shares of 10 percent of the share capital to 61 percent.

"This is the goal of article 33. If there is copper, we will build a car factory, so we will build an ecosystem for everything in Indonesia. In the future, it will be green energy," he said in a public lecture held at Lambung Mangkurat University, South Kalimantan, quoted Friday, May 3.

Bahlil said the target of adding Freeport shares to 61 percent was aimed at increasing the welfare of the Indonesian people. With the addition of these shares, it is hoped that there will be new jobs for the community.

"What are we doing this for? In order to be able to create jobs and business fields. If we build downstreaming in areas, we can create opportunities. Investment is like a train, there is a locomotive and a carriage," he said.

Bahlil explained that the state must have a clear policy direction. According to him, Indonesia is a rich country and Freeport is currently a state asset.

He said that until 2018, Freeport's shares owned by Indonesia were only 9.36 percent before finally becoming 51.23 percent after the divestment of shares in September 2018 through PT Inalum (Persero) which paid part of Freeport's shares of US$3.85 billion or almost Rp60 trillion.

In addition, regarding PT Freeport Bahlil's shares, PT Freeport's shares are currently owned by the majority by Indonesia with a valuation value of dividends reaching IDR 300 trillion.

"2018 Pak Jokowi said he would take as shares managed by foreigners, and that's Indonesia's wealth, both oil and Freeport. We (the Indonesian government) bought nearly USD 4 billion, and from that revenue, now the 2024 dividend is almost paid off with that income. This means that Pak Jokowi made the purchase policy not in vain, now the valuation value of PT Freeport reaches USD 20 billion, Rp. 300 trillion," he said.

Previously, it was reported that the process of submitting a business license for PT Freeport Indonesia which will expire in 2041 was almost complete and was just waiting for the revision of Government Regulation Number 96 of 2021 concerning the Implementation of Mineral and Coal Mining Business Activities.