REPUBLIKA.CO.ID, JAKARTA -- Coordinating Minister for Economy Darmin Nasution has been asked to facilitate a meeting of three related ministers to discuss acquisition of 10.46 percent stake in PT Freeport Indonesia.

The U.S. mining company , which has large copper and gold mines in Papua is to divest 10.46 percent of its shares this year .

The company set the price of the stake at US$1.7 billion, but the government said the price was too high especially with the shrinking price of its mineral products at present.

Energy and Mineral Resources (ESDM) Minister Sudirman Said said a team of officials of the ESDM Ministry, the Finance Ministry and State Enterprises (BUMN) Ministry would be formed to discuss the price set by Freeport.

"We will ask Coordinating Minister for Economy Darmin Nasution to facilitate the meeting of ESDM Minister, Finance Minister and BUMN Minister," Sudirman said here on Tuesday.

He said synergy between the related ministries is necessary to process the divestment as it concerns the interest of the central and regional governments, BUMN and regional administration company (BUMD).

As for the price, Sudirman said it was natural the seller would set a high price and the buyer wants the price to be as low as possible.

"But it seems the BUMN ministry has set up an independent appraiser . We just use the result of the appraisal," he said.

He said through the acquisition of the stake the government, which already has a 9.36 percent stake in Freeport, wants to strengthen its position in the management of the company.

With the divestment, the country, either the government alone or with state companies would have a 20 percent stake in Freeport this year.

Indonesia could still acquire a 10 percent more stake in PT Freeport until 2019 as regulated in the contract of the company.

PT Freeport, the subsidiary of the U.S. mining giant Freeport McMoRan Copper and Gold , is required by its contract to divest at least 30 percent of its share to the government or Indonesian partners.

The government has indicated it would not acquire the stake, but the right most likely would be given to state mining companies.

Minister for National Development Planning Sofyan Djalil has said the government has no budget for the stake , and even if it has it would rather use the money to finance infrastructure projects.

BUMN Minister Rini M. Soemarno has said state companies are ready to acquire the stake but not at the price level as set by Freeport.

Ikuti Whatsapp Channel Republika