JAKARTA (TheInsiderStories) – Good morning. Followings are some relevant news that might help your business decisions today:
Government to Acquire Rio Tinto’s Share in Freeport
Indonesia plans to acquire Rio Tinto’s 40 per cent interest in the giant Grasberg copper mine operated by the local unit of Freeport-McMoRan, its mining minister said.
Under a joint venture formed in 1996, Rio has a 40 percent interest in Freeport’s Grasberg contract, which entitles them to 40 per cent of production above specific levels until 2021 and 40 per cent of all production after 2022.
Under a framework agreement announced in August, Phoenix, Arizona-based Freeport said it would divest 51 per cent of Freeport Indonesia to the Indonesian government, but the fate of Rio’s interest in the mine has been unclear.
Indonesia plans in 2018 to complete the acquisition of Rio’s interest in the mine, as well as the purchase of a 51 percent stake in Freeport Indonesia by the Ministry of State-Owned Enterprises (SOE) and other government units, Energy and Mineral Resources Minister Ignasius Jonan said on Tuesday (05/12).
SOE’s Ministry to Establish Oil and Gas Holding Company Soon
The government will soon establish a state-owned oil and gas holding company led by state-owned energy firm Pertamina, according to a government official.
Fajar Harry, head of the State-Owned Enterprises Ministry’s mining business, strategic industry and media affairs, said one of the steps toward creating the holding company is to push state-owned gas distributor PT Perusahaan Gas Negara (PGN) to hold an extraordinary shareholders meeting.
After the establishment of mining holding company under the leadership of state-owned firm PT Inalum last week, the government was pushing the establishment of an oil and gas holding company.
Mattel Indonesia Books US$150 million Toy Exports
Toy maker PT Mattel Indonesia produces about 2 million toys, including Barbie dolls, a week with total exports worth US$150 million.
The products of its factory in Cikarang, West Java, account for about 60 percent of the global market, said Mattel Indonesia vice president and general manager Roy Tendean on Monday during the celebration of the company’s anniversary.
Mattel Indonesia, a subsidiary of Long Angeles’ based Mattel Inc., celebrated its 25 years of operation in Indonesia on Monday.
Record US Imports widen Trade Gap in October
US imports rose to the highest level on record in October, pushing the trade gap to its widest in nine months, according to government data released Tuesday, which could become a drag on growth.
The higher deficit was pushed by rising oil prices, as well as higher imports from China ahead of the holiday shopping season, the Commerce Department said in its monthly report. The mounting trade deficit comes the administration of President Donald Trump enters the latter stages of fraught negotiations with Mexico and Canada to revamp the North American Free Trade Agreement.
Boosted by a weaker US dollar, the October trade gap rose 8.6 per cent compared to September, to $48.7 billion, the highest since January, surpassing analyst expectations for an increase of only 5.6 per cent.