VIVAnews - Ministry of State-owned Enterprises (SOEs) said that the government will carry out a due diligence over PT Newmont Nusa Tenggara's assets.
"SOEs cannot just buy Newmont shares," Alexander Rusli, an adviser of SOEs Ministry, told VIVAnews in Jakarta on Monday, April 27. "We still have no idea on the price of Newsmont share."
He said that the government will first calculate the internal rate of return (IRR). IRR is an indicator for a company to choose whether or not to make investment. If the IRR is high, the expectation in investment return will be high. But if the IRR is low, the return expectation will also follow.
"If the IRR is above 10 percent, the government will consider buying it," said Rusli.
Based on the international arbitration decision, Newmont was considered violating working contract regulations signed by both the company and the Indonesian government. Therefore, Newmont is obligated to sell 17 percent of its shares, which have been unsuccessfully sold in the last three years.
--
Translated by: Ariyantri E. Tarman
Aniaya Pecalang di Bali, Polisi Tangkap Dua Bule Amerika
Polisi menangkap dua turis asing berkewarganegaraan Amerika yang melakukan penganiayaan terhadap pecalang di Bali
