State enterprises consortium prepared to buy Newmont shares

Jakarta (ANTARA News) - The State Ministry for State Enterprises is set to buy 17 percent of the investment stake of PT Newmont Nusa Tenggara (Newmont) by way of a consortium of state-owned companies if the government prioritized state enterprises.

"We have already discussed the planned consortium," State Minister for State Enterprises Sofyan Djalil said at his office in Jakarta Wednesday.

He said today (Wednesday, Apr 8) he had sent a letter to the Finance Minister and the Energy and Mineral Resources Minister asking for the nomination of state enterprises as divestment buyers, unless the government used its purchasing right.

Early this month, an international arbitration court won an Indonesian claim requiring Newmont to divest 17 percent of its stake to the Indonesian government.

Within 180 days following the verdict, the divestment must already been realized, otherwise, the government would have the right to revoke Newmont`s contract of work.

Sofyan said under the prevailing regulations the government could hand over a divestment share to another party unless the state had bought it.

Nevertheless, the minister did not dare to speculate what state enterprise would form the consortium, would they be a mining company or otherwise.

The minister had once suggested to support state enterprises like mining companies, like PT Aneka Tambang, for preparations to buy Newmont shares.

"Some state enterprises will be joining the consortium, but regional administrations are also welcome if interested," he said.