The Mimika legislative assembly (DPRD) in Papua province is currently still fighting for the local administration`s ownership share in PT Freeport Indonesia, a member of Commission C of the Mimika DPRD, Fabianus Jemadu said here, Monday.He added, following a study visit to West Nusa Tenggara (NTB) some time ago, the Mimika DPRD has formed a special committee for the divestment of shares of PT Freeport Indonesia.
The special committee is chaired by Luther Wakerkwa with deputy chairman Nurman Karupukaro and Muslihuddin as the secretary.
"We have coordinated with the Deputy Regent of Mimika, Abdul Muis and Mimika district administration gives a very positive response to the steps taken by the DPRD," Fabianus noted.
According to him, Mimika district has a big enough chance to get a stake in PT Freeport Indonesia regarding the current shares worth 9.36 percent of PT Freeport in a hanging position or non-proprietary condition.
The Mimika district administration and the DPRD will continue to fight for the 9.36 percent stake of the non-proprietary shares. Moreover, PT Freeport Indonesia has opened itself to Papua province and Mimika district to have the shares valued at 9.36 percent.
But the matter is the value of PT Freeport shares is very expensive and one percent is estimated to be worth Rp8 trillion, Fabian noted.
"If Mimika district can have a one to two percent stake in PT Freeport Indonesia, it is very good for the region`s interests in the future," he said.
Fabianus compared Mimika district with Southwest Sumbawa district, West Nusa Tenggara province both have a gold and copper mining company, PT Freeport Indonesia and PT Newmont Nusa Tenggara.
The province, he said, already has a 24 percent stake in PT Newmont which has been operating about for ten years and is currently struggling to get an additional seven percent stake. However, the administrations of Papua Province and Mimika district did not have any shares in PT Freeport although the US mining company had to process the mineral resources in Mimika for more than 40 years.
"The Mimika district DPRD plans to meet the governor to discuss how the value of shares to be purchased by Papua province and how the value of the shares that entitled to Mimika district," Fabianus explained.
Meanwhile, another member of the DPRD , Athanasius Allo Rafra said,he was not so optimistic that in the near future Mimika district could get a share of PT Freeport Indonesia since the stock prices are very high.
"We support the struggle of DPRD of Mimika committee. But personally I am not too optimistic because the value of shares of Freeport are very expensive," he said.
According to the former acting Mimika regent (2007-2008), the stock price of Freeport is estimated at around Rp8 trillion per one percent and is very difficult to buy by the Mimika district administration.
"How can we get that much money? The central government alone is not a majority shareholder in Freeport, while the Mimika budget is only Rp1,2 trillion per year," he said.
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