REPUBLIKA.CO.ID, JAKARTA -- State-owned mining companies (BUMN) are ready to take a majority stake in PT Freeport Indonesia by the end of 2018 after the gold and copper miner agreed to divest 51 percent of its shares.
The statement was announced by State-Owned Enterprises Minister Rini Soemarno in Jakarta, Thursday.
"Although the (divestment) mechanism has been set, we are still calculating the value," Soemarno remarked at the Indonesian Stock Exchange office, Jakarta.
Apart from holding a majority stake, the BUMD will also play a role in divesting the copper mining giant's stocks.
"We will further discuss the divestment scheme with state- and region-owned enterprises as well as other financial institutions," she noted.
"Some agencies, including the Finance Ministry and Energy and Natural Resources Ministry, will also be taken into account while divesting the 51 percent majority shares," Soemarno added.
In term of the outlays, the authority will call on some major state-owned institutions, such as the Workers Social Security Agency and the consortium of banks, as well as seek foreign investment to settle the issue.
"In order to strengthen our position, we need the 51 percent majority. We will seek other sources of funding," she remarked.
Also read: Govt and Freeport end dispute on divestment, smelter
On a different occasion, the State-Owned Ministry's Mining, Strategic Industries, and Media Deputy Fajar Harry Sampurno remarked that after the authority owns 9.36 percent of the shares, other local businesses could take over 41.64 percent of the stocks.
"The minister clearly expects that a BUMN could own the shares," he remarked.
According to the initial plan, some mining enterprises, including PT Inalum, PT Antam, PT Bukit Asam, and PT Timah, will merge to form a BUMN.
However, instead of automatically owning the shares, the holding company will be first listed in a special consortium along with other businesses.
Earlier on Tuesday, the Indonesian government and PT Freeport Indonesia had agreed to end years of dispute by completing the negotiation process.
"We are pleased to announce that we have reached a framework agreement to support operations and investment, which we are now doing in Papua. Mutual understanding regarding the structure of agreement is significant and positive for all stakeholders," President and Chief Executive Officer of PT Freeport Indonesia Richard C. Adkerson stated.
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