Indonesia Has 'No Clear Structure' for Freeport Stake Purchase Yet

A worker walks in an underground mine, part of the Grasberg copper and gold mine operated by Freeport Indonesia, the local unit of Freeport-McMoRan, near Timika in Papua. (Antara Photo/M. Agung Rajasa)

By : Wilda Asmarini | on 1:43 PM November 24, 2017
Category : Business, Corporate News

Jakarta. The Ministry of State Owned-Enterprises, tipped to oversee an acquisition of a majority stake in the local unit of Freeport-McMoRan, has "no clear structure" yet for the deal, an official said on Friday (24/11).

The government needed to be "careful" as the interests of Rio Tinto, which has a joint venture with Freeport in Indonesia, have not yet been accommodated in the government's plan for the acquisition, State-Owned Enterprises Deputy Minister Fajar Harry Sampurno said.

State-owned aluminium producer Inalum has been appointed by the government to acquire the stake, and plans to form a holding company for the purpose.

The company would group together other state-owned units, including coal miner Bukit Asam, tin miner Timah and diversified miner Aneka Tambang (Antam).

The holding company is expected to be formalized by the minister either "today or Monday," Inalum finance director Oggy A. Kosasih told reporters.



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