REPUBLIKA.CO.ID, JAKARTA -- Coordinating Minister for Maritime Affairs Luhut Binsar Panjaitan has expressed hope that copper and gold mining firm PT Freeport Indonesia will divest 51 percent of its shares to Indonesia before its contract ends in 2021.

The subsidiary of US-based Freeport McMoRan has agreed to divest up to 51 percent of its shares to Indonesia, Luhut said after a meeting on the development of the people's economy and maritime affairs at the Luhur Al-Tsaqafah Islamic boarding school in South Jakarta on Thursday.

Freeport agreed to the divestment proposal, realizing that the mining ground belongs to Indonesia, he stated. 

Also read: Govt allows Freeport to export concentrate until Oct 2017

"It is true that (Freeport) appears (to agree to the divestment proposal). How cannot it agree to it as the assets belong to the Indonesian nation," he noted.

Also read: Government agrees to give Freeport provisional IUPK

The Indonesian government has agreed to grant a provisional mining permit to Freeport to resume the export of concentrates for 8 months, pending the result of the second round of negotiations between the two sides.

During the period of time, both sides will continue their negotiations on several issues including provisions on investment stability, continuation of Freeport's operations, and divestment of Freeport shares to Indonesia.

The negotiations will last for 8 months starting from Feb 10 this year.

The Indonesian team of negotiators comprises the Energy and Mineral Resources Ministry, the Fiscal Policy Board, the Investment Coordinating Board, the Attorney General's Office, the Home Affairs Ministry, and Papua provincial government. 

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