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Freeport Demands Contract Amendment Clarity

12 August 2014 21:22 WIB

TEMPO.CO, Jakarta – Rozik B. Soetjipto, the president director of PT Freeport Indonesia, said that his company had reached five agreements with the Indonesian government. However, he still questioned the company’s future since the government has yet to confirm the contract extension. 

“Freeport has started to build smelters and use domestic products. But the contract is still unclear,” Rozik said on Monday, August 11, at Four Season Hotel, South Jakarta. 

The five agreements cover the expansion of concession areas, royalties and taxes, divestment, and processing and refining raw materials in Indonesia. 

According to Rozik, Freeport still needs the current and new government to shed light on the contract extension because, based on the existing regulation, Freeport can extend the contract in 2019.

Rozik revealed that the renegotiation process was tough because it took two years for the company to meet the requirements set by the government. He hoped the current government could serve as a mediator for the agreed terms between Freeport and the new government.

ALI NY | HUSSEIN ABRI YUSUF




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