Indonesia Ministry:IPO Doesn't Count as Part of Foreign Investor's Divestment in Local Miners
By I Made Sentana
JAKARTA--Foreign investors won't meet their obligations to gradually unload their stakes in local miners to Indonesian
investors via a listing in the Indonesia Stock Exchange.
According to rules announced last year, foreign investors in the mining sector have to reduce their ownership to at
most 80% six years after production begins, 70% after seven years, 63% after eight years, 56% after nine years and 49%
after 10 years.
But in a new decree signed by the Minister of Energy and Mineral Resources Jero Wacik earlier this month, but
published in the ministry's website Monday, the government clarified that foreign investors would not meet their
obligations to sell stakes to local investors by selling shares in the local bourse.
The minister's decree is the implementation of the decree signed by President Susilo Bambang Yudhoyono last year that
sparked criticism that the government was moving toward economic nationalism ahead of parliamentary and presidential
elections in 2014.
PT Freeport Indonesia, the local unit of Freeport-MacMoran Copper & Gold (FCX), and PT Newmont Nusa Tenggara, a
subsidiary of Newmont Mining (NEM), have considered selling their stakes in the local stock market to comply with the
But several law makers have said that the stakes sold in the local bourse could end up in the hands of foreign
-Write to I Made Sentana at firstname.lastname@example.org
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