Sunday, 23 September 2018 | 17:48 WIB

Finance Minister: Govt Hands over 10 Percent Share Divestment of PT Freeport to Papua

Finance Minister Sri Mulyani Indrawati.

JAKARTA, NNC - Finance Minister Sri Mulyani revealed that she will have rights over PT Freeport Indonesia (PTFI) shares which will also be given to the Government of Papua Province and Mimika Regency amounting to 10 percent.

The ownership is intended for the benefit of the people who are owners of customary rights and permanently inflicted.

The acquisition of PTFI divested shares will be conducted through a corporate mechanism, so as not to burden the State Budget and Regional Budget and become one of the benefits of the formation of Holding Company for State-Owned Enterprises engaged in Mining Industry.

"This agreement is materialization of the spirit of togetherness of all levels of government, the central government with the Papua Provincial Government, the Mimika Regency and the SOE jointly agreeing to work together in the process of acquiring PTFI divested shares," said Finance Minister Sri Mulyani in Jakarta on Friday (1/12/2018).

The whole process of PTFI's divestment of shares into 51 percent ownership of Indonesian participants is in accordance with the commitment of President Joko Widodo (Jokowi) which should be done in transparent manner, free from all group interests and with maintained governance at every stage.

"So, one of the benefits of holding state-owned mining company, PTFI's entire divested shares amounting to 51 percent will belong to Indonesia, as to President's commitment which must be transparent, clean, and maintained governance at every stage in order to create confidence," she said.