Saturday, 28 November 2020 | 00:05 WIB

MOF Sri Mulyani Appreciates Signing of SPA with Freeport

Finance Minister Sri Mulyani

JAKARTA, NNC - Finance Minister Sri Mulyani Indrawati appreciates PT Inalum, which successfully signed the Sales and Purchase Agreement (SPA) with PT Freeport-McMoRan Inc.

The signing of the SPA is the government's step to take over 51 percent of the shares of the US-based mining company. Moreover, the share divestment process is not easy.

"This process is not easy, so many details and this negotiation I admit is the process which is just as complicated. But with good intentions, Inalum and Richard [Adkerson, from Freeport], were finally able to fulfill and achieve a 51 percent share agreement through this SPA," Sri said at the Energy and Mineral Resources Ministry office, Jakarta, Thursday (09/27/2018).

In the future, Sri hopes that after the SPA is signed, the process of payment by PT Inalum to Freeport can run well because it has been supported by 11 foreign banks that fund the financing.

"I hope that the transaction can be completed in a timely manner, and we can run PTFI [PT Freeport Indonesia], which we maintain its performance," she said.

PT Inalum (Persero) and Freeport-McMoRan Inc. officially signed a Sales and Purchase Agreement related to the acquisition of 51 percent of Freeport-McMoRan's shares by the Indonesian government.

This signing is a continuation of the signing of the government's Head of Agreement with Freeport-McMoRan Inc. on August 12, 2018.

The SPA signing was carried out by Inalum's President Director Budi Gunadi Sadikin and FCX CEO Richard Adkerson, witnessed by Energy Minister Ignasius Jonan, SOE Minister Rini Soemarno, Finance Minister Sri Mulyani Indrawati and representatives of the Ministry of Environment and Forestry.

With this signing, the number of PTFI's shares owned by Inalum increased from 9.36 percent to 51.23 percent and the Papua Regional Government received 10 percent of 100 percent of PTFI's shares.