The process of flotation or floatation of mining minerals, such as copper, gold and silver

After a long journey, complicated and full of controversy, Indonesia finally made a history that might not be forgotten in every mind of the Indonesian people, especially the people of Papua. Right on Friday, December 21 yesterday, Freeport was officially handed over to the Indonesian government authorities through the company PT Inalum which managed a majority of 51.2% of the shares. This historic moment is exactly 3 days before the Christmas celebration and can be said to be the most beautiful Christmas gift for the people of Papua.

With the majority ownership of the shares, state revenues certainly increase. In particular, the Government of Papua Province and its people also get the results of the mine’s profits. Both from the profit of the activity and the benefits of taxes.

Jokowi stated that PT Inalum (Persero) had paid off the shares divested by Freeport. That way, the 51.2% stake in the mining giant from the United States (US) officially switched to Indonesia.

“I have just received a report from all related ministers from PT Inalum’s president director and from the CEO and from PT Freeport’s president director. It was stated that PT Freeport shares had already switched 51.2% to PT Inalum and already paid in full,” he said at the Presidential Palace Complex, Jakarta, Friday (12/21/2018)

President Joko Widodo (Jokowi) said that the acquisition of PT Freeport Indonesia by PT Indonesia Asahan Alumunium (Inalum) had been completed.

According to him, today is also a historic moment because, after decades of operating in Indonesia since 1973, Indonesia finally became the majority owner of Freeport. Later, the income obtained by the state will be better. “That will be better tax income, non-tax income, royalties. And this is what we are waiting for,” he added.

Jokowi said, the problems regarding the environment related to the construction of the Freeport smelter had been resolved and obtained an agreement. The people in Papua have also obtained a 10% stake in Freeport.

Also Read: In The Hands of Jokowi, Now Papua Can Smile Again

“I got a report related to the environment relating to the smelter that has been completed and has been agreed upon. This means that everything is complete and just works. And also the people in Papua will also get 10 percent of the existing shares. And of course, Papua can get local taxes,” he said.

Present at the meeting was Freeport McMoran CEO Richard Adkerson, PT Inalum (Persero) President Director Budi Gunadi Sadikin, ESDM Minister Ignasius Jonan, Finance Minister Sri Mulyani Indrawati, BUMN Minister Rini Soemarno, Pratikno Minister Secretary, Minister of Environment and Forestry Siti Nurbaya, Chief BKPM Thomas Trikasih Lembong, and Attorney General HM Prasetyo.

PT Freeport Indonesia to the relevant Ministry agreed to hand over 51.2% of Freeport’s shares to the Indonesian Government

With this, the benefits that will be gained by Indonesia, especially for the Papuan people, are that of the 100 percent shares of PTFI (PT Freeport Indonesia), the Papua Regional Government will have 10 percent, Inalum 41.2 percent, and Freeport McMoRan 48.8 percent. However, the combination between Inalum and the Papua Regional Government will make the Indonesian entity the PTFI controller.

The ten percent of the Papua Regional Government’s shares were then divided into 7 percent for Mimika Regency, which included customary rights, as well as 3 percent for Papua Province.

Through the shares owned, the Regional Government of Papua will receive a minimum dividend of 100 million US dollars or Rp 1.45 trillion per year which will be obtained after 2022. Where PTFI operations will run normally after the transition from open pit to underground mining.

In addition to shares, based on Government Regulation No. 37/2018 concerning Tax Treatment and/or Non-Tax State Revenues in the Mineral Mining Sector, the regional government will also get 6 percent of PTFI’s net profit.

Later, the 6 percent net profit will be divided into 2.5 percent for Mimika Regency, 2.5 percent for Districts outside Mimika, and 1 percent for Papua Province.

All of these benefits are beyond CSR and community development assistance as well as local tax revenues and royalties. Regarding the purchase of shares of the Papua Regional Government, Inalum will provide loans to Regional Government-Owned Enterprises (BUMD) of Papua amounting to 819 million US dollars pledged as collateral. Installment loans will be paid with PTFI dividends that will be obtained by Papua BUMD.

The Papua Regional Government’s shares will later be included in a special company called PT Indonesia Papua Metal and Mineral. Where Inalum will own 60 percent of its shares and 40 percent from the Regional Government of Papua through BUMD.

Congratulation Indonesia!

Reference:
cnbcindonesia.com
sindonews.com
tribunnews.com

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