51% PT Freeport Indonesia Divestment

51% PT Freeport Indonesia Divestment

Indigenous West Papuan appreciates Indonesia’s effort which successfully brought 51% divestment of PT Freeport Indonesia shares.

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Minister of Ministry of Energy and Mineral Resources Ignasius Jonan (right) with CEO Freeport MacMoran Inc, Richar Adkerson (left), VoA Indonesia (2017)

Since April 2017, Government of Indonesia and PT Freeport Indonesia have negotiated regarding four issues. First, operationalization issue, share divestment, smelter establishment, and state revenue problem. In spite of a long hour of negotiation, it ended with a positive result. On 26th August, PT Freeport Indonesia agrees to divest its hare to 51%, building the smelter which will be finished maximum in 2022. PT Freeport Indonesia also coincides to maintain the higher number of state revenue since after the negotiation PT Freeport has the temporary special mining license (IUPK) status.

“The results of negotiation are in harmony with the President Jokowi instruction, to put forward the national interest, West Papuan interest, and state sovereignty in resources supervision. However, this negotiation also notes and oversee the climate investment either for foreign investor or domestic investor.” Express Minister of Energy and Mineral Resources Ignasius Jonan.

This achievement then derives special applause from the indigenous people of West Papua. They commend the government efforts which successfully divest the share of PT Freeport Indonesia.

“A move being taken by President Jowoki which can hold 51% of PT Freeport Indonesia shares is remarkable. Thank you, President Jokowi.” Stated a cultural leader of West Papua and the Chairman of Management Center of West Papua Central Mountain Community, Agustinus Somau.

Besides, when met with Minister Ignasius Jonan, Head of Discussion Body of Amungme Tribe Odizeus Beanal also remind the government that there is a part of 51% of shares which is the rights of indigenous West Papuan and they deserve to feel the positive impact of this triumph.

“Next, we hope that we can participate in next negotiation of the allocation detail. We expect that the agreement includes the ulayat right of West Papuan (a legal term connoting communal rights of an ethnic to land based on the tribe’s custom), the indigenous West Papuan, and Indonesia,” said Odizeus Beanal (Ministry of Energy and Mineral Resource, 2017)

Minister of Energy and Mineral Resources then agree to facilitate a negotiation among the West Papuan PT Freeport Indonesia, and the government itself. “I suggest that you (indigenous West Papua representative) write a letter or speak in the forum. We will (Government of Indonesia) facilitate it. Approximately 5-10% perhaps can be given to the indigenous West Papuan.”

Keyword: West Papua, Indonesia, PT. Freeport Indonesia, indigenous West Papuan, Ministry of Energy and Mineral Resources, West Papuan, divestment, Ulayat rights

By: Zura (Researcher, MaCDIS)

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