The President Director of PT Freeport Indonesia, Tony Wenas, confirmed that discussions are still underway regarding the proposed 12 percent share divestment from Freeport-McMoRan Copper & Gold Inc. to Indonesia. “These are still under discussion. If it’s a divestment, it’s Freeport-McMoRan that is divesting,” Wenas stated when met at the Ministry of Investment/BKPM Office in South Jakarta on Thursday, October 2.
This statement comes after the Minister of Investment and Downstreaming, Rosan, announced on Wednesday, October 1, that an agreement had been reached for the 12 percent stake divestment to Indonesia. Rosan revealed that this significant agreement was secured during his visit to the United States, following meetings with Freeport-McMoRan CEO Richard C. Adkerson and company President and owner Kathleen L. Quirk.
Crucially, Rosan emphasized that this landmark agreement was achieved at no cost to Indonesia, attributing the success to the “art of negotiation.” When questioned about Freeport’s willingness to relinquish shares without charge, Rosan explained that the value of a 12 percent stake would be substantial if not acquired through skilled negotiation, necessitating intensive discussions.
Beyond the divestment of the 12 percent stake, Rosan also disclosed that Freeport has committed to constructing two schools and health facilities for the local communities in Papua. These social commitments underscore the broader impact of the ongoing discussions and agreements.
The divestment itself is a fundamental condition for Freeport to extend its Special Mining Business Permit (IUPK) for Production Operations until 2041. Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia further affirmed that the proceeds from this divestment will be partially allocated to Papuan Regional Owned Enterprises (BUMD). This strategic move is projected to significantly increase the Indonesian government’s ownership in PT Freeport Indonesia (PTFI) from its current 51 percent to a commanding 63 percent by 2041.
Summary
PT Freeport Indonesia President Director Tony Wenas confirmed that discussions are still ongoing regarding a proposed 12 percent share divestment from Freeport-McMoRan to Indonesia. This statement followed Investment Minister Rosan’s earlier announcement that an agreement for this divestment had been reached during his visit to the United States. Rosan emphasized that this significant agreement was secured at no cost to Indonesia, attributed to the “art of negotiation.”
This divestment is a fundamental condition for extending Freeport’s Special Mining Business Permit (IUPK) until 2041. Beyond the share transfer, Freeport has also committed to constructing two schools and health facilities for local communities in Papua. Proceeds from this divestment will be partially allocated to Papuan Regional Owned Enterprises (BUMD), projected to increase the Indonesian government’s ownership in PTFI from 51 percent to 63 percent by 2041.