Freeport Belong to Indonesia?

For the first time, Indonesia hold 51,23% shares sale agreement of PT Freeport
Indonesia (PTFI) under PT Indonesia Asahan Aluminium, or Inalum. The change in share
ownership will officially occur after a payment transaction of US$3.85 billion to Freeport-
McMoran, and to be completed before the end of 2018. It means, Indonesia can officially acquire
PT Freeport from foreign company. But, based on the contract of work Indonesia can only get
the ownership rights of Freeport in 2021.

People who have a pro argument claim that, Indonesia should wait until the contract of
work ends. Because, Indonesia should pay more for the shares sale agreement that is not cheap
which is it doesn’t make any sense for Indonesia to pay their own source. And there is opinion
who claim that this issues is just for political strategy that used by one of the president candidate.

Conversely, another group of person said that it is the right time for Indonesia to
acquire PTFI as soon as possible to get large amount of profit that can grow Indonesian GDP or
also pay for Indonesian debt. Because,Indonesia can get US$ 0,17 billion profit on 2019 also
Freeport-McMoran will pay dividend around US$ 60 billion to the government if its operating
period expired in 2021 was extended to 2041.
Another reason is Indonesia can use the heavy equipment and expert from Freeport-
McMoran as good as possible which we now Indonesia is lack of expert and technology for gold
and copper mining. And do not rule out for the possibility that Freeport-McMoran will extend
the contract of work because there is an option to extend up to 2041.