Government confident of fruitful negotiation with Freeport

Jakarta (ANTARA News) - The government has expressed hope that the negotiation between the Indonesian government and PT Freeport Indonesia would reach a common ground, one of which is the divestment of 51 percent.

Vice President Jusuf Kalla stated that the process of negotiation between the Indonesian government and PT Freeport Indonesia was still ongoing. The government believes that the negotiations will be fruitful in accordance with the specified due time.

"I am sure there will be a conclusion," Kalla noted here on Tuesday.

There are four important points in the negotiation process, namely the divestment of 51 percent for the Indonesian government, operational continuity, smelter development, and investment stabilization in the form of fiscal policy.

"The greatest problem is the preparation time of each point," Kalla remarked.

Earlier, the Minister of Energy and Mineral Resources, Ignasius Jonan, stated that PT Freeport Indonesia had agreed to divest 51 percent of the shares.

However, the American company denied the deal, stating that the negotiation process was still continuing.

The negotiation between the government and PT Freeport Indonesia came after the Regulation of the Minister of Energy and Mineral Resources No. 6 of 2017, which is derived from the Government Regulation No. 1 of 2017.

Under the regulation, Freeport must change its status to Mining Business License (IUPK) from its Contract of Work (KK) status. In addition, Freeport is also required to divest 51 percent of its shares if the status has to be changed to IUPK.

Source: Antara News

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