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ESDM Can Hold Export Permit for Freeport

7 August 2014 19:04 WIB

TEMPO.CO, Jakarta - The Energy and Mineral Resources (ESDM) Ministry will continue to monitor mineral export volume shipped by PT Freeport Indonesia. If the volume is less than 60 percent of 750,000 tons a year, the ESDM ministry may halt Freeport’s export activities. 

“The concentrate export can be stopped so it can be improved,” Sukhyar, the mineral and coal director general at the ESDM Ministry, said at his office on Thursday, August 07, 2014. 

Sukhyar said this move was part of the government’s efforts to keep an eye on Freeport’s activities after the renegotiation agreement between Freeport and the government was signed. He added after the deal was secured, Freeport would hold an export permit (SPE) issued by the Trade Ministry. 

“If they are willing to follow the rules, we will reduce the tariff. If they perform poorly, we won’t grant them the permit,” Sukhyar said. 

Responding to the question on contract amendment by the new government, Sukhyar said it was possible. After the signing of a memorandum of understanding, Sukhyar added, the new government would settle the contract amendment.

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