Freeport, a mining company operating in Indonesia, is currently in discussions with the government and Danantara regarding a plan to transfer shares to Indonesia free of charge. According to Danantara’s CEO, Rosan P. Roeslani, Freeport has reportedly agreed to transfer 12 percent of its shares to the Indonesian side at no cost.
The mechanism and technical details of the share transfer are still under negotiation. There is no clarity yet regarding the share distribution scheme, ownership governance, or the legal and financial implications for both Freeport and the state.
This divestment process is part of the government’s efforts to increase national ownership of mining assets, particularly those located in Indonesia’s strategic areas. This move aligns with the government’s aspirations to optimize the management of natural resources for the benefit of the nation.
Freeport’s decision has garnered widespread attention as it is seen as a strategic momentum for Indonesia to strengthen its position in the national mining industry. With a larger ownership stake, the government stands to gain greater economic benefits—both from dividends and through stronger influence in the company’s strategic decision-making. In addition, this step is expected to enhance state sovereignty over natural resource management and promote greater transparency and accountability in the mining sector.
With this new share transfer agreement, the Indonesian government’s ownership in PT Freeport Indonesia will reach 63 percent.
