Ada Pertanyaan? Hubungi Kami 
2026 Hak Cipta Milik Hukumonline.com
Produk Pilihan
Ada Pertanyaan? Hubungi Kami Ari Pramuditya, Kartini L Makmur
Freeport's mining site in Papua. Photo by: Freeport Indonesia (www.ptfi.co.id)
To date, PT Freeport Indonesia has yet to meet its obligations as regards the divestment of its shares. The corporation should have been offering divestment since 14 October and Freeport needs to meet this requirement if it wishes to renegotiate its contract of work (kontrak karya).
As is well known, the Mining Law stipulates that foreign mining companies must divest their shares. According to Article 112 paragraph (1), the obligation to divest must be implemented by a company after five years of production in Indonesia. Based on the government’s calculations, Freeport is required to divest some 10.64% of its shares.
Heriyanto, acting as Head of Legal and Public Relations at the Directorate General of Minerals and Coal at the Ministry of Energy and Mineral Resources (Energi dan Sumber Daya Mineral – “ESDM”), has stated that divestment is an extremely important process and is implemented to ensure that the government receives its legally mandated dividend. The Indonesian Constitution states clearly that the country’s natural resources are to be owned and controlled by the state for the prosperity of the people.
Freeport has yet to meet this legal obligation however, and so the government is readying itself to make a stand. According to Mr. Heriyanto, a warning has already been sent to Freeport by the Ministry of ESDM.
“We have sent a letter in order to remind Freeport that it should fulfill its obligations immediately,” Mr. Heriyanto explained from his office on Wednesday, 18 November 2015.
Mr. Heriyanto also stated that the government had given Freeport a deadline as regards its divestment obligations and emphasized that the divestment process should be completed by the end of this year. If this requirement is not met, then the government will not hesitate to punish Freeport to the full extent of the law.
“The divestments should be completed this year,” Mr. Heriyanto emphasized.
Heriyanto also explained that the reason for the delay in Freeport’s divestment obligation related to a lack of agreement between the American corporation and the Indonesian Government regarding the value of the shares to be divested. According to Mr. Heriyanto, the calculation of reserves in the divestment value remains a sticking point.
Mr. Heriyanto further elucidated that Freeport was demanding that the divestment value should relate to the company’s investment in mineral reserves until 2041. Meanwhile, the government is insisting that the value of the shares be calculated with regard to the investment assets already invested to date by Freeport in Indonesia. According to the government, a reserve calculation scheme can only be implemented after the company’s contract of work has been extended.
“We do not want to consider the reserves at this time. They will only be taken into account if Freeport’s contract is extended,” Mr. Heriyanto explained.
Additionally, the divestment bidding mechanism is still the subject of fierce debate. Mr. Heriyanto revealed that Freeport is insisting that an Initial Public Offering (IPO) should be the method used. However recording to Mr. Heriyanto, this approach should only be used as a last resort.
“Freeport still wants the IPO, but if there are other options, then we should take them. An IPO is not our preferred option,” stated Mr. Heriyanto.
According Mr. Heriyant0, a share price has also yet to be set by Freeport as regards its divestment obligations. The amount of shares to be offered is also apparently still unknown.
“The share price is still not available to us, as Freeport has not supplied us with any information relating to either the price or how many shares will ultimately be sold,” Mr. Heriyant0 concluded.
(sp)
Ari Pramuditya, Kartini L Makmur
Freeport's mining site in Papua. Photo by: Freeport Indonesia (www.ptfi.co.id)
To date, PT Freeport Indonesia has yet to meet its obligations as regards the divestment of its shares. The corporation should have been offering divestment since 14 October and Freeport needs to meet this requirement if it wishes to renegotiate its contract of work (kontrak karya).
As is well known, the Mining Law stipulates that foreign mining companies must divest their shares. According to Article 112 paragraph (1), the obligation to divest must be implemented by a company after five years of production in Indonesia. Based on the government’s calculations, Freeport is required to divest some 10.64% of its shares.
Heriyanto, acting as Head of Legal and Public Relations at the Directorate General of Minerals and Coal at the Ministry of Energy and Mineral Resources (Energi dan Sumber Daya Mineral – “ESDM”), has stated that divestment is an extremely important process and is implemented to ensure that the government receives its legally mandated dividend. The Indonesian Constitution states clearly that the country’s natural resources are to be owned and controlled by the state for the prosperity of the people.
Freeport has yet to meet this legal obligation however, and so the government is readying itself to make a stand. According to Mr. Heriyanto, a warning has already been sent to Freeport by the Ministry of ESDM.
“We have sent a letter in order to remind Freeport that it should fulfill its obligations immediately,” Mr. Heriyanto explained from his office on Wednesday, 18 November 2015.
Mr. Heriyanto also stated that the government had given Freeport a deadline as regards its divestment obligations and emphasized that the divestment process should be completed by the end of this year. If this requirement is not met, then the government will not hesitate to punish Freeport to the full extent of the law.
“The divestments should be completed this year,” Mr. Heriyanto emphasized.
Heriyanto also explained that the reason for the delay in Freeport’s divestment obligation related to a lack of agreement between the American corporation and the Indonesian Government regarding the value of the shares to be divested. According to Mr. Heriyanto, the calculation of reserves in the divestment value remains a sticking point.
Mr. Heriyanto further elucidated that Freeport was demanding that the divestment value should relate to the company’s investment in mineral reserves until 2041. Meanwhile, the government is insisting that the value of the shares be calculated with regard to the investment assets already invested to date by Freeport in Indonesia. According to the government, a reserve calculation scheme can only be implemented after the company’s contract of work has been extended.
“We do not want to consider the reserves at this time. They will only be taken into account if Freeport’s contract is extended,” Mr. Heriyanto explained.
Additionally, the divestment bidding mechanism is still the subject of fierce debate. Mr. Heriyanto revealed that Freeport is insisting that an Initial Public Offering (IPO) should be the method used. However recording to Mr. Heriyanto, this approach should only be used as a last resort.
“Freeport still wants the IPO, but if there are other options, then we should take them. An IPO is not our preferred option,” stated Mr. Heriyanto.
According Mr. Heriyant0, a share price has also yet to be set by Freeport as regards its divestment obligations. The amount of shares to be offered is also apparently still unknown.
“The share price is still not available to us, as Freeport has not supplied us with any information relating to either the price or how many shares will ultimately be sold,” Mr. Heriyant0 concluded.
(sp)