Jakarta: Researcher of Publish What You Pay Indonesia, Maryati Abdullah, is worried about points of agreement between the government and Freeport Indonesia. The concern is about the government’s divestment funds that will be used to build the smelter.
“I hope Freeport does not wait for the divestment first and then builds a smelter. It is the same as the government building the smelter. Even though the government is looking for money to finance mine’s property”, she said when speaking at the Pancasila University Jakarta, Thursday (14/9/2017).
Maryati said, if it is calculated, the divestment value is quite large. Assuming the value of the remaining 41.63 divestment shares equals USD6.634 billion, then at an exchange rate of around Rp.14,000 in US dollars, we will find Rp.85.6 trillion.
“The fund of that size is not small. That is why we are worried that Freeport will use the funds to build a smelter. It is a dangerous thing,” he said.
Moreover, continued Maryati, the concern was justified. Given a 9.36% stake since 2013 has never been paid due to Freeport’s loss. There is even information that Freeport McMoRan Inc has sold its shares to a company. “This means that the shares in Grasberg have been split. They no longer belong to Freeport,” she said.
Therefore, Maryati hopes that what was discussed earlier is not divestment. However, the contract will be extended again or not when it ends in 2021 instead of being treated to a 51% divestment discourse, building smelters, and more significant state revenue.
“The proof is that until now, no one has said that State-Owned Enterprises is ready to become operators. Why hasn’t the contract been evaluated so far? So that we can know the reasons for being extended or not, “he said again.
Besides, continued Maryati, the evaluation stage five years before the contract’s end has not been discussed. Because there is no obligation, we extend it.
“Ironically, what is happening now is a commitment, not an agreement. Because until now there has been no black and white between the two parties,” he explained.
Admittedly, if there are points of agreement, appreciation is because there are connections. Nevertheless, is there any guarantee if it is not fulfilled. The smelter development’s divestment has been around for a long time but has not been realized.