Freeport's Export Permit Extended  

TEMPO.CO, Jakarta - Energy and Mineral Resources Minister Sudirman Said said he has extended PT Freeport Indonesia’s export permit for the next six months. Its contract extension, however, has not been decided.

“For the next six months, we will agree on matters that haven’t been agreed on,” said Sudirman on Sunday.

According to R Sukhyar, director general for mineral and coal, the government and Freeport will seek agreement related to acceleration of development in Papua in the next six months. The government wants to take advantage of Freeport’s presence to expedite development in Papua, including mineral sector.

“This second MoU will add other important things in contract amendment,” said Sukhyar.

With the MoU extension, the government cancels on revoking Freeport’s export permit. Sukhyar said the cancellation was decided after Freeport was deemed committed to build smelter.

PT Feeeport Indonesia president director Maroef Sjamsoeddin said he appreciated the MoU extension and the next six months must be utilized.

“Building of smelter which costs US$2.3 billion has been decided in East Java,” said Maroef.

Freeport’s contract will explore in 2021. Previously, Susilo Bambang Yudhoyono administration has signed an MoU on Freeport’s contract amendment which will change Freeport’s contract to operating permit in 2021-2041. However, two years before Freeport’s contract ends, the government and Freeport must sign contract amendment.

KHAIRUL ANAM