The Government issued the Government Regulation No. 1 of 2017 on the Fourth Amendment to Government Regulation No. 23 of 2010 on the Implementation of Mineral and Coal Mining signed by President of the Republic of Indonesia, Joko Widodo on 10 February 2017.
Important points Regulation No. 1 Year 2017 include: first, the divestment of 51% in the tenth year since the production period to the government, the incial government, or local government district or city, state, enterprises, or national private entities; second, the application for extension to the mining business license (IUP) and special mining business license (IUPK), the fastest 5-year and no later than one year before the expiration of a business license; Third, the benchmark price of mineral and coal sales regulated by the Government; Fourth, the contract holder's work permit be required to change the special mining permit production operations; and fifth, the government through the Ministry of Energy set up procedures for the implementation of the increase in value-added and sales of metallic minerals.
Divestment of companies Mineral and Coal done gradually in accordance with Government Regulation No. 1 2017 Article 97 paragraph 2. Mineral and Coal Mining companies must divest the shares of 20% (twenty percent) in the sixth year since the production, the seventh year of 30% (thirty percent), the eighth year of 37% (thirty-seven per cent), the ninth year of 44% (forty-four per cent) and the tenth year of 51% (fifty one percent) of the total shares. Gradual divestment of up to 51% in the tenth year binds to all mineral and coal companies including PT Freeport Indonesia Company.
PT Freeport Indonesia Company, a subsidiary of Freeport-McMoRan Copper & Gold Inc. of the United States perform the Contract of Work (CoW) with the Indonesian government twice: first in 1967 KK and KK II in 1991 in the area of Tembagapura, Mimika District, Papua ince.
KK I is valid for 30 years for mining Erstberg operated production in 1973, and KK II on December 30, 1991 is valid for 30 years (which will expire in 2021) for mining Grasberg operation license production was issued in 1996 with a production of 300 thousand tons per day. With the calculation of operating time production run since 1996, then it should PT Freeport Indonesia Company follow the rules to divest a stake of 51%, even according KK II of Article 24 paragraph 2 of nationalization shares.
Freeport Indonesia Company should be the 5th year after the signing of the KK II. Ownership shares. Freeport Indonesia Company at this time, amounting to 81.28% owned by Freeport-McMoran Copper & Gold Inc. United States, 9.36% owned by the Government and 9.36% owned by a private company PT Indocopper Investama Bob Hasan, thus Freeport-McMoran Copper & Gold Inc. The United States should give up the release back shares amounting to 32.28% of total shares. Freeport Indonesia Company.
Papua Opportunities Toward Independence
Divestment of PT Freeport Indonesia Company became a good opportunity for Papua and the District. Mimika to develop a budget with kepersertaan buying shares (Participate of interest). PP No. 1 2017 in article 97, paragraph 3, paragraph 4 and paragraph 5 stipulates that divestment is done to the Government, the incial government, or local government district / city, state, enterprises, or national private entities. In the event that the Government is not willing to buy the shares offered to the incial Government and Regency / City and subsequently offered to state enterprises and enterprises, and only then offered to national private companies.
In harmony with these regulations, and to realize the Government Nawacita Program Joko Widodo, would be wise if the divestiture could be purchased by the Government. Papua, the Government District. Mimika, enterprises. Papua or local government district. Mimika. In 2015, PT Freeport Indonesia Company had offered shares to the Government of Indonesia amounted to 10.64% at US $ 1.7 billion (equivalent to Rp. 22.61 trillion at an exchange rate of US $ 1 = Rp. 13,300), then by the same estimated share price takes about 60 to 70 billion for an investment of 32.28% stake in PT Freeport Indonesia Company. Surely Papua Government, the Government District. Mimika, enterprises.
Papua and / or local government district. Mimika will not be able to invest funds to purchase a stake of 32.28% for the ince of Papua in 2017 budget, only Rp 56.85 trillion, which is a budget allocation from the central government (Wilpret Siagian - detikFinance: December 15, 2016), whereas Revenue (PAD).
Papua Rp1.097 trillion, based on revenue targets in 2016, which by November 2016 had been realized for Rp796 383 198 965 (publis website Dispenda Papua). However, the Government. Papua, the Government District. Mimika, enterprises. Papua and / or local government district. Mimika can ime the management of Government in taking advantage of opportunities divestment of PT Freeport Indonesia Company in cooperation with banks that channeled funds repatriation.
In that case, a good reputation PT Freeport Indonesia Company will be able to extend the contract of PT Freeport Indonesia Company for 2 X 10 years (of course, by using the term Permit Special Productions IUPK after the year 2021), so that the ownership of shares. Freeport Indonesia Company by the Government. Papua, the Government District. Mimika, enterprises. Papua and / or local government district. Mimika will contribute greatly to build resilience budget. Papua and Mimika regency.
Consistency of Government Officials in Achieving Divestment Stock of PT FI
Divestment obligations of Freeport Indonesia Company up to 51% has been set in KK II 1991 Section 24, of course, with mechanisms and different periods with PP 1 in 2017.
With reference KK II in 1991, PT Freeport Indonesia Company should nationalize a stake of 10% in the fifth year after the signing of the agreement and not later than 10 years after penandangan. After that, PT Freeport Indonesia Company must nationalize share of 2.5% every 2 years after the tenth year for ten period so that during the 30 years of operation is estimated at only 35% of the shares are nationalized.
However, KK II in 1991 confirms that PT Freeport Indonesia Company shall follow the applicable laws in Indonesia as the provisions of Article 18, paragraph 2, Article 3, paragraph 2, so that all their disagreements divestiture period then determined by other approved an agreement between the Indonesian government and PT Freeport Indonesia Company.
PT Freeport Indonesia Company has a remaining operating life of 5 years until 2021, so it is important for the Government to assess the PT Freeport Indonesia Company as a company that is easy to work or not included in the divestment of implementing policies to Indonesian citizens. 2019-2024 year, the government can take over after 2021 when PT Freeport Indonesia Company considered less willing to cooperate with the Government.
It considers that the current value of the assets Freeport (replacement cost) of US $ 600 billion or equivalent to
Rp7,980,000,000,000, an exchange rate of US $ 1 = Rp13,300 (SOE Prioritize Buy Stocks Freeport: Compass, February 23, 2017), the Government of Indonesia in Papua province and the Mimika regency should be confident to take over PT Freeport Indonesia Company.
Indonesian Foreign exchange reserves are more than 1,500 trillion and the value of the Indonesian national budget more than 1.7 trillion and economic indicators are improving, should be a guarantee of confidence the government to take over. Raw material reserves of gold and copper diareal PT Freeport Indonesia Company still estimated at 2.8 billion tons, which will be exhausted the next 50 years (Revelation Sunyoto, detik FinaNce: 14 November 2014), with an estimated profit of PT Freeport Indonesia during 2016 of approximately US $ 1.6 billion, or around Rp21.3 trillion (Fana Supaman, Voice Pembahruan: August 31, 2016), the managing PT Freeport Indonesia is very promising.
The Government's commitment to promote the potential of national and provincial government advance. Mimika Regency of Papua and determine in nationalized shares. Freeport Indonesia Company. It is important for government officials at this time or the Government in 2019-2024 to consistently maintain a commitment to nationalize shares. Freeport Indonesia Company.
*) Social and Behavior Observer. Alumni: Post-Graduate of University of Indonesia.
COPYRIGHT © ANTARA News Megapolitan 2017
Important points Regulation No. 1 Year 2017 include: first, the divestment of 51% in the tenth year since the production period to the government, the incial government, or local government district or city, state, enterprises, or national private entities; second, the application for extension to the mining business license (IUP) and special mining business license (IUPK), the fastest 5-year and no later than one year before the expiration of a business license; Third, the benchmark price of mineral and coal sales regulated by the Government; Fourth, the contract holder's work permit be required to change the special mining permit production operations; and fifth, the government through the Ministry of Energy set up procedures for the implementation of the increase in value-added and sales of metallic minerals.
Divestment of companies Mineral and Coal done gradually in accordance with Government Regulation No. 1 2017 Article 97 paragraph 2. Mineral and Coal Mining companies must divest the shares of 20% (twenty percent) in the sixth year since the production, the seventh year of 30% (thirty percent), the eighth year of 37% (thirty-seven per cent), the ninth year of 44% (forty-four per cent) and the tenth year of 51% (fifty one percent) of the total shares. Gradual divestment of up to 51% in the tenth year binds to all mineral and coal companies including PT Freeport Indonesia Company.
PT Freeport Indonesia Company, a subsidiary of Freeport-McMoRan Copper & Gold Inc. of the United States perform the Contract of Work (CoW) with the Indonesian government twice: first in 1967 KK and KK II in 1991 in the area of Tembagapura, Mimika District, Papua ince.
KK I is valid for 30 years for mining Erstberg operated production in 1973, and KK II on December 30, 1991 is valid for 30 years (which will expire in 2021) for mining Grasberg operation license production was issued in 1996 with a production of 300 thousand tons per day. With the calculation of operating time production run since 1996, then it should PT Freeport Indonesia Company follow the rules to divest a stake of 51%, even according KK II of Article 24 paragraph 2 of nationalization shares.
Freeport Indonesia Company should be the 5th year after the signing of the KK II. Ownership shares. Freeport Indonesia Company at this time, amounting to 81.28% owned by Freeport-McMoran Copper & Gold Inc. United States, 9.36% owned by the Government and 9.36% owned by a private company PT Indocopper Investama Bob Hasan, thus Freeport-McMoran Copper & Gold Inc. The United States should give up the release back shares amounting to 32.28% of total shares. Freeport Indonesia Company.
Papua Opportunities Toward Independence
Divestment of PT Freeport Indonesia Company became a good opportunity for Papua and the District. Mimika to develop a budget with kepersertaan buying shares (Participate of interest). PP No. 1 2017 in article 97, paragraph 3, paragraph 4 and paragraph 5 stipulates that divestment is done to the Government, the incial government, or local government district / city, state, enterprises, or national private entities. In the event that the Government is not willing to buy the shares offered to the incial Government and Regency / City and subsequently offered to state enterprises and enterprises, and only then offered to national private companies.
In harmony with these regulations, and to realize the Government Nawacita Program Joko Widodo, would be wise if the divestiture could be purchased by the Government. Papua, the Government District. Mimika, enterprises. Papua or local government district. Mimika. In 2015, PT Freeport Indonesia Company had offered shares to the Government of Indonesia amounted to 10.64% at US $ 1.7 billion (equivalent to Rp. 22.61 trillion at an exchange rate of US $ 1 = Rp. 13,300), then by the same estimated share price takes about 60 to 70 billion for an investment of 32.28% stake in PT Freeport Indonesia Company. Surely Papua Government, the Government District. Mimika, enterprises.
Papua and / or local government district. Mimika will not be able to invest funds to purchase a stake of 32.28% for the ince of Papua in 2017 budget, only Rp 56.85 trillion, which is a budget allocation from the central government (Wilpret Siagian - detikFinance: December 15, 2016), whereas Revenue (PAD).
Papua Rp1.097 trillion, based on revenue targets in 2016, which by November 2016 had been realized for Rp796 383 198 965 (publis website Dispenda Papua). However, the Government. Papua, the Government District. Mimika, enterprises. Papua and / or local government district. Mimika can ime the management of Government in taking advantage of opportunities divestment of PT Freeport Indonesia Company in cooperation with banks that channeled funds repatriation.
In that case, a good reputation PT Freeport Indonesia Company will be able to extend the contract of PT Freeport Indonesia Company for 2 X 10 years (of course, by using the term Permit Special Productions IUPK after the year 2021), so that the ownership of shares. Freeport Indonesia Company by the Government. Papua, the Government District. Mimika, enterprises. Papua and / or local government district. Mimika will contribute greatly to build resilience budget. Papua and Mimika regency.
Consistency of Government Officials in Achieving Divestment Stock of PT FI
Divestment obligations of Freeport Indonesia Company up to 51% has been set in KK II 1991 Section 24, of course, with mechanisms and different periods with PP 1 in 2017.
With reference KK II in 1991, PT Freeport Indonesia Company should nationalize a stake of 10% in the fifth year after the signing of the agreement and not later than 10 years after penandangan. After that, PT Freeport Indonesia Company must nationalize share of 2.5% every 2 years after the tenth year for ten period so that during the 30 years of operation is estimated at only 35% of the shares are nationalized.
However, KK II in 1991 confirms that PT Freeport Indonesia Company shall follow the applicable laws in Indonesia as the provisions of Article 18, paragraph 2, Article 3, paragraph 2, so that all their disagreements divestiture period then determined by other approved an agreement between the Indonesian government and PT Freeport Indonesia Company.
PT Freeport Indonesia Company has a remaining operating life of 5 years until 2021, so it is important for the Government to assess the PT Freeport Indonesia Company as a company that is easy to work or not included in the divestment of implementing policies to Indonesian citizens. 2019-2024 year, the government can take over after 2021 when PT Freeport Indonesia Company considered less willing to cooperate with the Government.
It considers that the current value of the assets Freeport (replacement cost) of US $ 600 billion or equivalent to
Rp7,980,000,000,000, an exchange rate of US $ 1 = Rp13,300 (SOE Prioritize Buy Stocks Freeport: Compass, February 23, 2017), the Government of Indonesia in Papua province and the Mimika regency should be confident to take over PT Freeport Indonesia Company.
Indonesian Foreign exchange reserves are more than 1,500 trillion and the value of the Indonesian national budget more than 1.7 trillion and economic indicators are improving, should be a guarantee of confidence the government to take over. Raw material reserves of gold and copper diareal PT Freeport Indonesia Company still estimated at 2.8 billion tons, which will be exhausted the next 50 years (Revelation Sunyoto, detik FinaNce: 14 November 2014), with an estimated profit of PT Freeport Indonesia during 2016 of approximately US $ 1.6 billion, or around Rp21.3 trillion (Fana Supaman, Voice Pembahruan: August 31, 2016), the managing PT Freeport Indonesia is very promising.
The Government's commitment to promote the potential of national and provincial government advance. Mimika Regency of Papua and determine in nationalized shares. Freeport Indonesia Company. It is important for government officials at this time or the Government in 2019-2024 to consistently maintain a commitment to nationalize shares. Freeport Indonesia Company.
*) Social and Behavior Observer. Alumni: Post-Graduate of University of Indonesia.
Editor : M. Tohamaksun
COPYRIGHT © ANTARA News Megapolitan 2017