JAKARTA. PT Freeport Indonesia will benefit local capital market if permitted to conduct its obligatory share divestment through an initial public offering (IPO), a Financial Services Authority (OJK) executive believes. The commissioner for capital market supervisor at OJK, Nurhaida, said that the IPO would be a good opportunity for Indonesians to own shares of the US-based mining company. "A company with great value in the capital market would increase its market capitalization significantly," said Nurhaida in Jakarta on Monday.
By conducting an IPO, Nurhaida said, Freeport would be listed on the Indonesia Stock Exchange (IDX), and as a listed company, the giant gold and copper miner would have to adhere to good governance. "As a public company, the performance of Freeport Indonesia would be being monitored and supervised by the OJK,” she asserted. She added that the government had not yet decided how to set up the divestment scheme. According to Nurhaida, if the divestment is done through an IPO, the government would have to revise Government Regulation (PP) No. 77/2014.
