REPUBLIKA.CO.ID, JAKARTA -- Chairman of Commission VII of House of Representatives, Kardaya Warnika, said the divestment of Freeport shares to public through initial public offering (IPO) was not the best option.

"If Freeport choose the IPO, it means that the shares are not taken by the government, because it can be bought by other people or foreign investors," said Kardaya, Friday (16/10).

Kardaya explained, the divestment of Freeport should give benefit for the government and Indonesian people. He considered, IPO still could provide opportunity for foreign investors to manage of Indonesia's natural wealth.

"IPO was not divestment in the contract. Foreign investors can buy it, whereas purpose of divestment is for taking control of national goal," he added.

On 14th October 2015 Freeport should have started offering its shares to the government. However, the US-based company extended the time of divestment for the revision of Law no. 77 of 2014.

The shares, based on priorities, will be offered to the government. After that, it will be offered to SOEs and private sector, through the IPO.

Ikuti Whatsapp Channel Republika