PT Freeport Indonesia announced the resignation of Chappy Hakim as the companys president director on Saturday.
“It is an honor for me to have been the president director of Freeport Indonesia, and I highly respect the company and its talented team members. Being a president director required extraordinary commitment with regard to time, and I have decided to resign from carrying out my tasks as president director, in the best interest of Freeport and my family, and to continue my support to the company as an advisor,” he said in a press statement issued by Freeport Indonesia.
Richard C Adkerson, Chief Executive Officer and President of Freeport-McMoRan Inc. which is the principal of Freeport Indonesia, thanked Chappy for his contribution so far.
“We understand that this was a difficult decision for Pak (Mr) Chappy. We express our appreciation for his services and support so far to the company. We hope we could continue to get advice and suggestions from him,” he added.
Retired marshal Chappy, who is a former air force chief of staff, was named president director of Freeport Indonesia in Nov 2016, after being a senior advisor of the gold and copper mining company in Papua since Aug 2016.
Chappys resignation happened in the midst of change of the companys status from a working contract (KK) to a special mining business permit (IUPK).
Freeport has insisted on continuing the nail down tax system and rejecting to divest up to 51 percent of its shares.
Based on the new law, the company on the other hand, has to follow a prevailing tax system and divest up to 51 percent of its shares.
On Feb 9, 2017, Chappy clashed with a parliament member from the House Commission VII after meeting with the Commission.
Chappy replaced previous Freeport Indonesian president director Maroef Sjamsoeddin who resigned in Jan 2016.
Maroef, who was a former chief of the Indonesian Intelligence Agency, resigned after the revelation of a conversation record of a share deal scandal locally known as “Papa Minta Saham” (Papa wants shares).