Jakarta, Indonesia Sentinel — President Joko Widodo (Jokowi) has called on Energy and Mineral Resources Minister Bahlil Lahadalia to expedite the divestment of an additional 10% stake in PT Freeport Indonesia. This push comes as the construction of Freeport’s copper smelter in Gresik, East Java, is now complete.
“This process is ongoing. Ask the Energy Minister about the details, but I have requested that it be settled quickly. The smelter is finished, and it’s an asset that belongs to Indonesia,” Jokowi stated during the inauguration of the smelter on Monday, September 23, 2024.
Negotiations to acquire this additional 10% are still underway. Jokowi compared it to the complex and prolonged discussions that resulted in Indonesia securing a 51% majority stake in Freeport back in 2018. That process took several years of challenging negotiations.
“When we acquired 51%, the talks were intense and lasted years. It wasn’t something we achieved in just a few months. Many were pessimistic, but I remained optimistic that we would secure the majority stake,” he explained.
Jokowi had previously announced that the government plans to increase its ownership in PT Freeport Indonesia by another 10% in the coming months. This will bring Indonesia’s total shareholding to 61%.
The President highlighted that the state’s majority stake will greatly benefit Indonesia. Around 80% of Freeport’s profits will now flow into state revenues through various mechanisms, including royalties, corporate income tax, employee taxes, and export duties.
“Freeport is no longer an American company. It now belongs to Indonesia. The acquisition was paid for, not through force, but with money, and that money came from America itself,” Jokowi said.
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He also pointed out that the deal was struck before global copper prices surged, which means Indonesia made a considerable profit from the transaction.
(Ray)
