Jakarta – The Minister of State-Owned Enterprises (BUMN), Erick Thohir, admitted that he is striving to ensure the divestment of 10 percent of PT Freeport Indonesia’s shares can be completed by the first quarter of 2025.
“Let’s give it a try.” Let’s try (Q1-2025),” said Erick Thohir when met at the Ministry of State-Owned Enterprises Office, Jakarta, Tuesday (12/24/2024).
Furthermore, Erick acknowledged that there are still some obstacles in the process of divesting Freeport Indonesia’s shares. However, he did not specify in detail what the obstacles were.
“We will try, we will try.” Because there are indeed several agreements whose dynamics are quite complex,” he said.
It is known that the acceleration of the divestment of 10 percent of PT Freeport Indonesia’s shares had been requested by President Joko Widodo before he stepped down. Jokowi asked the Minister of Energy and Mineral Resources, Bahlil Lahadalia, to expedite the completion of the divestment.
The reason is that the government estimates that its shareholding in PT Freeport Indonesia will increase by 10 percent. Thus, the total shares that the government will own in PT Freeport will amount to 61 percent.
In addition, the majority ownership of shares in PT Freeport will provide significant benefits to the country.
As much as 80 percent of PT Freeport’s profits will eventually go into the state treasury, in the form of royalties, corporate income tax, employee income tax, export duties, and exit duties.
Freeport Indonesia Prepares Social Investment Fund of USD 100 million per Year until 2041
PT Freeport Indonesia has allocated USD 100 million per year as a social investment budget until 2041. The social investment fund aims to support various community development and empowerment programs as a form of the company’s operational responsibility to the community in Mimika Regency, Central Papua Province.
The budget is divided into several sectors such as education, health, economy, infrastructure, as well as culture and sports. The funds are taken from the company’s operational costs.
This was stated by the Group Leader of the Project Management Office at PT Freeport Indonesia, Andriyana Saputro.”In the future, the portion of social investment in the field of education will increase,” he said at the Kuala Kencana Complex, Mimika Regency, Central Papua, Thursday (12/12/2024).
He mentioned that, in total over the past 31 years, Freeport has spent a total of USD 2.1 billion on social investment costs over the past 31 years (1992-2023).
Where the details in the last 5 years are as follows: USD 122 million in 2023, USD 122.3 million in 2022, USD 109.3 million in 2021, USD 60.7 million in 2020, and USD 62.8 million in 2019. Specifically in 2024, the figure will be USD 151.9 million.
He explained that the priorities of the composition of the social investment budget allocation are variable, referring to the focus that will be promoted at one time.
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