Freeport Returns to the Mother Country

Freeport Returns to the Mother Country.

Freeport Returns to the Mother Country [ “Freeport kembali ke pangkuan Ibu Pertiwi”] is written by Fahmy Radhi, a lecturer at the University of Gadjah Mada faculty of management and business. The paperback is published by Balai Pustaka (2019), written in Bahasa Indonesia, and available from bookshops for Rp 180,000. The first 28 pages of the book is introductions and support for the book by many prominent people, including Ignasius Jonan (Minister of ESDM), Rini M. Soemarno (minister of SOE’s), Sri Mulyani Indrawati (Minister of Finance) along with politicians and academics. The middle 158 pages of large print provide the books contents, while the remaining 122 pages is media and other reference material etc.

The authors short introduction sets out his objective of the book as “I hope. this book can be used as a reference for understanding the management of the Freeport mine in particular, and other mines in the country.” Indeed, this book is great for young historians of Indonesian policy to glimpse the Governments position on the acquisition of the Freeport mine. The committed supporters of this book may need to ensure the Freeport story is a long-term success, wherein NGO’s and others may hold the books public supporters to account.

The book sets out the sequence of steps by the Government to justify, and implement, the acquisition of a majority share in PT. Freeport Indonesia. The tone of the book is a simplified reflection of the Central Governments view of the event. Indeed, it would seem the Indonesian negotiation team evolved all sorts of tactics to acquire the shares at a bargain price, as suggest by the following extracts (Google translate). “HOA, Inalum agreed to spend US $ 3.85 billion to buy a 40% PI Rio Tinto in PT FI and 100% Freeport shares in PT Indocopper Investama, which has a 9.36% stake in PT FI. The ownership of Inalum after the sale of shares and the Rio PI is 51.2% of which 10% PI will be submitted to the Government of the Papua Region. Income of the wealth of the gold deposit, with the reserve value estimated at USS42 billion, copper reserves of USS 116 billion, and silver USS2.5 billion, total proven reserves an achieved USS160 billion or equivalent to Rp2,290 trillion. Reserve it estimated to be explored and exploited until 2060.”

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