Jakarta, Jubi – Indonesian Minister of Energy and Mineral Resources Sudirman Said said mining activities at Freeport Indonesia’s site located in Mimika, Papua should continue although even if Freeport had left due to the termination of its contract.
“Being extended or not, the management of mining in Mimika must be continued by anyone,” Said said in the Indonesian House Representatives Compound in Jakarta on last week. The statement was to answer the question from a Council’s member at Working Meeting of Commission VII of the Indonesian House Representative with the Ministry of Energy and Mineral Resources to discuss about whether the Freeport Indonesia’s Contract of Work should be extended or not.
Concerning to the pressure to terminate the Freeport’s contract, Sudirman Said said it could not be done immediately due to a lot of losses that might be incurred since, according to him, 92 percent of Mimika Regional Revenue originated from the mining sector.
“Additionally, 37 percent of our mining revenue is from there, besides there are thousands of workers work on mining sector and support about 30,000 households,” he said.
Related to the process of Freeport’s shares divestment amounted USD 1.7 billion which is currently in the evaluation phase of the bid price, he asserted the government would not respond any assumptions that rise and may interfere the evaluation process. “The Government would not respond it because currently it is also in the evaluation process, while we are in the ministry only to hold the right time,” he said.
About the evaluation team, he said the ministry would not form their own team, but only wait the result of the evaluation team by the Ministry of State Owned Enterprise. Nevertheless he still believes the price, which resulted from the evaluation, is the proper price although he expects the lowest price.
“Certainly we want the lowest price, but later the team should decide the best price. And for the team, the Ministry of State Owned Enterprise has appointed valuator and we would only observe from the distance to avoid the overlap,” he said.
Earlier, the Ministry of State Owned Enterprise Rini M Soemarno revealed the ministry has appointed two securities companies to conduct a review against the offer of Freeport’s shares divestment. Those companies are PT Mandiri Sekuritas (Persero) and PT Danareksa (Persero). Sudirman explained the obligation to divest that up to 30 % has been arranged in the Regional Regulation No. 77 2014, Article 97 Paragraph (1d).
Meanwhile, the obligation of 20 percent offer must be done for a year since a regulation was issued in accordance to Article 112D Paragraph (2a). Related to the offer of Freeport’s shares divestment, the Ministry of Energy and Mineral Resources through Directorate General of Mineral and Coal Resources has set a pricing team. (*/rom)