Below is a list with tagged columns and company profiles.

Today's Headlines Divestment

  • Freeport Indonesia & Government Stuck on Divestment Valuation

    Freeport Indonesia & Government Stuck on Divestment Valuation

    Indonesia's Energy and Mineral Resources Ministry stated that it will remain committed to the agreement that was made between Freeport Indonesia and the central government of Indonesia on 29 August 2017. However, although parent company Freeport-McMoran agreed to divest a majority stake in its Indonesian unit (Freeport Indonesia) in those negotiations, the exact divestment valuation is yet to be agreed upon.

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  • Freeport Indonesia Studies IPO on the Indonesia Stock Exchange

    Freeport Indonesia Studies IPO on the Indonesia Stock Exchange

    The recent visit of Indonesia Stock Exchange (IDX) General Director Tito Sulistio and Director of Corporate Listing Samsul Hidayat to Freeport Indonesia's Grasberg mine in Timika (Papua), signals that the subsidiary of US-based natural resources company Freeport McMoRan Copper & Gold Inc is serious about studying the possibility to divest a 10.64 percent stake through an initial public offering (IPO) on the IDX. Both Directors met Freeport Indonesia's General Director Maroef Sjamsoeddin at the world’s largest gold mine and third-largest copper mine.

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Latest Columns Divestment

  • Divestment Procedure for Mining Companies Revised

    Divestment Procedure for Mining Companies Revised

    Recently, the Ministry of Energy and Mineral Resources (Ministry) issued regulation number 9/2017 on Procedures for Divestments and Mechanisms to Determine the Divested Share Price for Business Active in the Minerals and Coal Sector (New Regulation). The New Regulation replaces Ministry regulation number 27/2013. In this column we discuss the impact of the New Regulation on foreign investors in Indonesia.

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  • Freeport Indonesia May Pursue Initial Public Offering (IPO)

    Freeport Indonesia to Pursue Initial Public Offering (IPO)

    Chances are big that Freeport Indonesia will conduct an initial public offering (IPO) on the Indonesia Stock Exchange to comply with the divestment requirement. Freeport Indonesia, the local unit of US-based Freeport-McMoRan Copper & Gold, operates the vast Grasberg mine in Papua. This mine is the world's largest gold mine and third-largest copper mine. The Indonesian government's divestment requirement is one the demands for starting contract extension negotiations in 2019.

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  • Indonesia and Freeport Bargaining over 10.64% Stake

    Indonesia and Freeport Bargaining over 10.64% Stake

    The bargaining over the 10.64 percent stake in Freeport Indonesia has begun. Whereas Freeport proposed a price of USD $1.7 billion, Indonesia's Ministry of Energy and Mineral Resources says the stake is only worth USD $630 million. Due to Government Regulation No. 77/2014 on the Implementation of Mineral and Coal Mining Business Activities, Freeport Indonesia - the local unit of US mining giant Freeport McMoRan - has to divest a 30 percent stake (to an Indonesian party) gradually up to the year 2019. Currently, the central government already owns a 9.36 percent stake in Freeport Indonesia.

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  • Divest Share Capital Obligation by Foreign Companies Reregulated

    Divest Share Capital Obligation by Foreign Companies Reregulated

    Under the old BKPM (investment body) Regulation number 5 of 2013 on Guidelines and Procedures on Licensing and Non-licensing of Capital Investment as amended by BPKM regulation number 12 of 2013 (Old BKPM Regulation), the divestment of Foreign Investment Companies (PT PMA) was no longer regulated. Under the investment regulation prior to the Old BKPM regulation there was such requirement. The new BKPM Regulation number 14 of 2015 regarding the Guidelines and Procedures for the Investment Principle Permit (New BKPM Regulation), once again includes a requirement to divest for PT PMA companies.

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  • New Investment Regulation Foreign Investors Indonesia (1/2)

    New Investment Regulation Foreign Investors Indonesia (1/2)

    Recently, the Indonesia Investment Board (BKPM) issued two new regulations which replace BKPM regulation number 5 of 2013 as amended by number 12 of 2013 about Guidelines and Procedures on Licensing and Non-licensing of Capital Investment (“Old Investment Regulation”). The two new regulations are BKPM regulation number 14 of 2015 about the Guidelines and Procedures for Principle Investment Licensing and BKPM regulation number 15 of 2015 about Guidelines and Procedures on Licensing and Non-licensing of Capital Investment. In this column we discuss the contents of BKPM Regulation number 14 of 2015

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  • Freeport Indonesia's Grasberg Contract Extension, Share Divestment & Investment

    Freeport Indonesia's Grasberg Contract Extension, Share Divestment & Investment

    Freeport Indonesia, the local unit of US-based energy and mining giant Freeport-McMoRan Inc, will be allowed by the Indonesian government to operate the Grasberg mine in Papua (the world’s largest gold mine and third-largest copper mine) beyond 2021 (when the existing contract expires). Sudirman Said, Indonesian Minister of Energy and Mineral Resources, told reporters that the central government has provided assurances to Freeport. However, it will require a regulatory amendment first before Freeport Indonesia can submit a proposal for extension.

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  • Sale-and-Buy-Back of Shares in Indonesia

    Sale-and-Buy-Back of Shares in Indonesia

    Sale-and-Buy-Back of Shares is a method which can be utilized by foreign companies (PMA) in Indonesia to fulfill their divestment requirement. Such divestment requirement is usually stated in their Principle License (Izin Prinsip) and/or in the Business License (Izin Usaha). In a Sale-and-Buy-Back of shares construction, shares are temporary sold to a trusted Indonesian party. After all governmental requirements are fulfilled the shares are bought back by the PMA. In this column we will discuss the Sale-and-Buy-Back of shares procedure.

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  • Divestment Foreign Companies (PMA) Indonesia

    Divestment Foreign Companies (PMA) Indonesia

    The obligation for foreign companies to perform a divestment of part their shares to Indonesian companies has raised already much discussion among foreign investors. Before the enactment of BKPM regulation number 5/2013 on Guidelines and Procedures on Licensing and Non-licensing of Capital Investment as amended by BPKM regulation number 12/2013 (BKPM Regulation), divestment was required for all foreign companies (PMA) in Indonesia. The new regime of the BKPM Regulation removes this obligation, even though there are still sectors in Indonesia which require foreign companies to divest, such as the mining sector.

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  • Mineral Ore Export Ban Affects Production Rates of Freeport Indonesia

    Freeport Indonesia stated that the company's production of copper concentrate plunged since the Indonesian government implemented the ban on exports of unprocessed minerals on 12 January 2014. Currently, Freeport only produces to supply Smelting Gresik, Indonesia's first copper smelter and refinery. As such, Freeport only operates at 45 percent of production capacity regarding copper concentrate. According to Freeport Indonesia's spokeswoman Daisy Primayanti, production of copper concentrate fell to 3,150 tons per day.

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