Papua Leaders to Discuss Freeport Share Distribution Following Presidential Directive

Background on Freeport Shareholding

Papua regional leaders are set to convene discussions regarding the distribution of PT Freeport Indonesia shares, particularly the 10% allocation given to the Papua region following the 2018 divestment. President Prabowo Subianto has directed that the distribution scheme for these shares be examined, especially with the government's plan to increase its stake in Freeport by an additional 12%.

Key Discussion Points

1. Distribution Scheme for Existing 10% Shares: The primary focus will be on how to distribute dividends from the 10% shares allocated to the Papua region.
2. Impact of Additional 12% Share Purchase: The planned increase in government stake might affect the overall shareholding structure and dividend distribution.
3. Facilitation by Central Government: The discussion will be facilitated by key ministers, including Minister of Home Affairs Tito Karnavian and Minister of Energy Bahlil Lahadalia.

Significance of the Discussions

The outcome of these discussions will have significant implications for the Papua region, affecting both the local economy and the relationship between the central government and regional authorities. The distribution of dividends from Freeport shares is a critical issue, given the historical context and the economic importance of the mining operation in Papua.

Next Steps

The facilitation by senior ministers indicates the government's commitment to addressing regional concerns and ensuring that the benefits of major natural resource projects are shared equitably. The discussions are expected to provide clarity on the future management of Freeport's shares allocated to the Papua region.