Bakrie still undecided over Freeport's stake<\/p>\n
JAKARTA (JP): The chairman of the Bakrie Group, Aburizal
\nBakrie, has again denied publicly listed PT Bakrie Brothers will
\nsell its stake in PT Indocopper Investama, a 9.36 percent stake
\nholder at PT Freeport Indonesia.<\/p>\n
He said he was aware of a statement from Bakrie Brothers'
\nsenior vice president and chief financial officer, Nalin Rathod,
\nthat the company was negotiating to sell its stake in Indocopper.<\/p>\n
However, Aburizal said he had not received any proposal from
\nthe management of Bakrie Brothers about such a plan.<\/p>\n
\"They must convince me what the benefit is (of selling shares
\nin Investama),\" Aburizal told journalists after attending a
\nmeeting on partnership between large and small business at the
\nMinistry of Cooperatives and Small Enterprises.<\/p>\n
Rathod said Tuesday it was not in the company's interest to
\ninvest outside its core business, like in Freeport. Instead, it
\nshould better strengthen its core business, namely
\ntelecommunications and infrastructure.<\/p>\n
He said Bakrie Brothers earned US$15 million in dividends from
\nits 51 percent stake in Indocopper in 1995, which he said was
\nless than expected.<\/p>\n
Aburizal disagreed, and said the investment in Freeport
\nthrough Indocopper had so far yielded good returns.<\/p>\n
\"If they said they will sell it, they must compare it with the
\nfuture yields. How many percent will the return be? And if they
\nsell it, what will the money be used for?\" Aburizal asked.<\/p>\n
Freeport Indonesia, 80 percent owned by Freeport-McMoran
\nCopper and Gold of the United States and 10 percent each owned by
\nthe Indonesian government and Indocopper, had operated in Irian
\nJaya since 1973 under the first generation of mining contracts.<\/p>\n
Aburizal said earlier the Indonesian government and Indocopper
\nnow each held only 9.36 percent of Freeport Indonesia since they
\ndid not increase their equity capital when Freeport-McMoran
\nrecently increased its share capital and issued new shares.<\/p>\n
Bakrie bought a 10 percent stake in Freeport in January 1992
\nfor US$213 million. The Indonesian government had earlier bought
\n10 percent of Freeport.<\/p>\n
The Freeport divestment was made as a condition of having its
\nmining contract renewed after it found about 1.1 billion more
\ntons of copper ore reserves in Irian Jaya. The contract was
\nrenewed on Dec. 30, 1991.<\/p>\n
In December 1992, Freeport bought 49 percent of Indocopper's
\nshares for $212 million, which was almost the same amount that
\nBakrie had paid Freeport for its 10 percent stake in the American
\ncompany.<\/p>\n
The Kontan business weekly tabloid raised the issue Bakrie was
\nabout to sell its stake in Indocopper to the government. Later,
\nrumors said Bakrie was negotiating with timber baron Muhammad
\n(Bob) Hasan.<\/p>\n
These rumors came amid mounting pressure on the government to
\nincrease its stake in Freeport and the recent disputed Busang
\ngold mine in East Kalimantan.<\/p>\n
Aburizal yesterday said he had not been pressed by the
\ngovernment to sell Bakrie's controlling stake at Indocopper. He
\nsaid any decision to sell or to retain the stake would be decided
\nbased on business, not political considerations.<\/p>\n
\"No one can press me on that matter. Only the management of
\nBakrie Brothers can press me. If they consider selling the stake
\nin Indocopper would be in the interest of Bakrie Brothers, I
\nwould just endorse it,\" he said. (rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bakrie-still-undecided-over-freeports-stake-1447893297",
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