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After Discussing the Contract, All Freeport Officers Mute

Vice President Jusuf Kalla (JK) revealed his thoughts on Indonesia's ambitions to control the majority of PT Freeport Indonesia's shares.

He reminded about the importance of preparing human resources (HR) quality and adequate capital.

"Freeport is in talks, the government should think about the readiness when Freeport releases its shares, we need skill and capital," JK said in Jakarta yesterday.

JK said, controlling the Freeport mine does not mean to have to manage alone. Needs to work with multinational companies that are stronger than Indonesian companies.

"Many of our experience in managing the mine is sometimes inefficient, so it depends on the contract, so the contract is always 20 years old, extended again, if not qualified, then we will stop," he said.

JK explained that the management of Indonesia's natural resources must be based on Article 33 of the Constitution. But, the meaning of the chapter should be seen well.

According to him, the article contains the understanding of all natural wealth must be controlled by the state. However, for the management does not mean should not cooperate with foreigners. For the implementation is regulated in the Act. For example, nickel and coal mines require permission from the government.

As is known, the government is negotiating with Freeport to discuss the continuation of gold mining cooperation in Timika, Papua. There are four negotiation points discussed. Namely about the release of 51 percent (divestment) shares, extension of operations, investment stability, and the construction of smelter processing and refining facilities.

Yesterday, the Ministry of Energy and Mineral Resources (ESDM) together with the Ministry of Finance (MoF) continued negotiations with Freeport Indonesia officials.

The meeting was held at the Office of the ESDM Ministry in Jakarta. Those who participated in the negotiations, from the government, among others, Director of Minerals and Coal Ministry of Energy and Mineral Resources Bambang Gatot and representatives of the Ministry of Finance Fiscal Policy (BKF). Freeport, among others, Freeport Indonesia Director Tony Wenas and Freeport Indonesia Director Clementino Lamury. No participant will vote on the outcome of the negotiations. Everything is silent.

"You can not talk first," said Bambang.

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