Wednesday, 21 October 2020 | 11:55 WIB

Freeport Shares Divestment Reach IDR54 Trillion

PT Freeport Indonesia

JAKARTA, NETRALNEWS.COM - Freeport Indonesia's 51 percent stake divestment is estimated to be worth USD4 billion or equivalent to IDR54 trillion.

Jonan said that in terms of valuation if the projected Freeport McMoran (FCX) has a market value of USD20.74 billion in the New York Stock Exchange, Freeport Indonesia's contribution is approximately 40 percent of that value.

Jonan further explained that 40 percent of USD 20.74 billion is approximately USD8 billion.

So if the majority divestiture will be taken by Indonesia at least more or less than USD4 billion should be prepared as it refers to a 51 percent divestment of USD8billion.

"If it is referenced, the average within 5-10 years of profit contribution from Grasberg or Freeport Indonesia operations is about 40 percent, so the value is USD8 billion. The 51 percent is 4 billion. Then just ask how much the premium is, because this control 51 percent," said Jonan, in front of Commission VII DPR, Monday (10/9/2017).

The issue of control, according to Jonan is currently in talks. But it has been committed since the beginning, that for the implementation of the mine is still carried out by Freeport McMoran, but managerial or arrangement remains under the Indonesian government.

About the decision to renew itself, the government insisted if that would be provided if the terms offered by Indonesia had been agreed upon amongst the 51 percent divestment, the two had committed to make the smelter, the three state revenues should be greater.

The government will discuss strategy to lead to the technical thing in private.