REPUBLIKA.CO.ID, JAKARTA -- State-owned aluminum smelter operator PT Indonesia Asahan Aluminium (Inalum) has been urged to immediately take over control of U.S. PT Freeport Indonesia. Inalum should be seriously committed to wrapping up negotiations on Freeport divesting up to 51 percent of its shares, energy economic observer from the state Gadjah Mada University Fahmy Radhi said here on Friday.
The process of the take over of the 51 percent stake should come to a conclusion before June this year that renewal of export license for copper concentrate is no longer needed, Fahmy said.
Inalum, the holding company for state mining companies, has been named by the government to take over the majority shares of the subsidiary of the U.S. mining giant Freeport McMoRan Copper & Gold, which operates large copper and gold mines in Papua.
He said there are potential risks to be faced both economically, politically and socially if the negotiations would drag out longer.
"As long as Inalum could not bring to an end the process of negotiations, the Energy and Mineral Resources Minister would continue to extend the license for concentrate exports by Freeport to avoid potential risks of losses," he said.
Fahmy said the legal position of Inalum as the holding company for state mining companies is stronger after the Supreme Court rejected demand for judicial review filed by a Coalition of Civilian Community against the regulation on holding company in the mining sector.
The Supreme Court said the regulation is not in contrary to the Law on state companies.
"Everyone including the Coalition of Civilian Community have to accept the Supreme Court's decision and support the holding system," he said.
The state company holding system is based on the government regulation PP 47/2017 naming Inalum as the parent company for mining companies including PT Aneka Tambang Tbk, PT Bukit Asam Tbk, and PT Timah Tbk.
The purpose of the holding system is to strengthen the financial structure and integration of businesses and for "value creation", that state companies could better compete globally.
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