Jakarta (ANTARA News) - The Energy and Mineral Resource Minister Ignasius Jonan has shared his optimism that the divestment process of PT Freeport Indonesia would be finalized in October.
"Yes. It can be finalized in October," he said here on Thursday.
As a coordinator of the negotiation between the US-based giant mining company and the Indonesian government, he hoped that the talks, including on the agreed taxation scheme, could be completed before the end of the year.
Jonan noted that the taxation scheme would be discussed with the Finance Ministry, while the divestment would be discussed with the State Enterprises Ministry.
During the talks in August, the government and PT Freeport Indonesia have discussed the final stage of agreement regarding the companys mining contract extension in Indonesia.
"The talks had started early this year and intensified during the past three months, through all our best efforts and cooperation," he remarked.
The talks have agreed on 51 percent of PT Freeport divestment. This has been discussed in more detail and attached with the Special Mining Business License (IUPK).
The issues on concession and the end of contract would be discussed further.
The mining firm has also agreed to build smelter, five years since the issuance of the IUPK.
PT Freeport has also agreed to maintain the state revenue. "The amount should be compared to the state revenue under the previous contract of work."
Following the agreement, PT Freeport Indonesia could extend its operation, maximum by 20 years, to 2041.
The government would work on cooperation with PT Freeport to finalize documents of the agreement, and the company would obtain necessary corporate approval.
Source: ANTARA News