REPUBLIKA.CO.ID, JAKARTA - Gold and copper mining company, PT Freeport Indonesia will divest 15 percent of its shares. Ministry of Industry MS Hidayat said that government would buy 10 percent shares, while five percent would be sold to public.

"Especially for 10 percent shares, stakeholders still have not yet decided whether it would be bought by central government, regional, or state owned enterprises," Hidayat said on Monday.

Government currently has 9.36 percent shares in Freeport Indonesia, while the rest is owned by Freeport MacMoran Copper & Gold Corporation, United States. Freeport is still waiting for government to decide on extending the contract mining in Indonesia for more 20 years. The topic is still under discussion with the House of Representative.

If Freeport obtains permission for extension, government will ask the company to fulfill some requirements. For example, they have to make some adjustments on technical matters. Freeport is also required to comply new royalty agreement.

President Director of Freeport Indonesia, Rozik Boedioro Soetjipto explains his desire to extend contract as there are so much potential mining and minerals contained there. 

"Freeport mineral reserves in the surface are going to run out in 2015. However, it still has a lot of minerals under the ground, about 2.5 billion tons or 87 percent of overall mineral reserves," Soetjipto said. 

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