REPUBLIKA.CO.ID, JAKARTA -- The government has obligated the U. S. mining company PT Freeport Indonesia to complete divesting 10.64 percent foreign stake before October 14, 2015, a senior official said.

The Director General for Mineral and Coal Affairs of the Ministry of Mines and Energy, Sukhyar, stated here on Thursday that the Freeport obligation was in accordance with government regulation (PP) number 77/2014.

"Based on the regulation, Freeport is required to divest 20 percent of its stake to Indonesian partners," he added.

Freeport has divested 9.36 percent of its shares, which are now owned by Indonesian participants. The remaining 90.64 percent is still under foreign control, i. e. under the control of Freeport McMoran.

Therefore, the mining company needs to divest the remaining 10.64 percent before October 14, 2015.

Sukhar further noted that based on PP number 77/2014, Freeport is also required to divest 30 percent of its stake before October 14, 2019.

The obligation to divest 30 percent of its shares is stipulated in a memorandum of understanding signed after the renegotiation of its work contract.

The director general also pointed out that his team would work out a ministerial regulation on the divestment process as part of efforts to follow up on the government regulation.

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