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Monday, 28 December 2015 - 23:20 WIB

10 Percent of Freeport’s Shares is Best Resolution for Papua Security

Jayapura, Jubi – Papua Governor Lukas Enembe revealed the Papua Provincial Government would like to have a 10-percent stake in PT. Freeport Indonesia, which has invested in Mimika Regency, for a long term.

“We have proposed 17 points to Freeport that the president lately accommodated 11 of it, which includ the demand on a stake. We asked for that before the end of SBY’s administration, 10 percent must be allocated for Papua,” he said in Jayapura on Sunday (27/12/2015).

However, he admitted that no mechanism had yet to be built concerning the share acquisition process since the Papua Provincial Government lacks the financial capacity to spend tens of trillions rupiahs.

“What is about the payment mechanism, annual book or so on, but how can we get this 10 percent because it’s so costly. It is best mechanism for Papua security,” he said.

But, he also confirmed that the provincial government refused to involve the third party, in this case it’s private sector, in Freeport’s stock purchasing process for Papua.

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“We don’t have cash, but to involve the third party would not give a good impact on us. We knew about the experience with Newmont, so it is the best way for us. We also must look to Mahakam block model, to the local and central governments, why don’t we apply it with the case of Freeport?” he said.

“We already have a team to negotiate, to find the best solution for Papua, therefore the local government and Papuan people at least could get it with easier way,” he added.

Further he reminded that the Papua Provincial Government must get Freeport’s shares because it has close connection with the entire aspects of life in Papua.

“Some said the government wants to take all, but it is not about the economic matter, it is also about the politic. We will keep the discussion to obtain the certainty of Freeport’s future and the investment could run smoothly,” said Enembe. (*/rom)

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