TEMPO.CO, Jakarta - PT Freeport Indonesia is consistently reluctant in changing their operations from the previous Contract of Work (CoW) into a special mining business permit (IUPK).
"For a number of reasons, we cannot accept the condition," said President and CEO of Freeport-McMoran Inc. Richard C. Adkerson on Monday, February 20, 2017.
According to Adkerson, the Indonesian government has already provided an export permit which requires PT Freeport to switch operations into an IUPK. The changes to an IUPK, Adkerson said, does not provide a sense of guarantee for the company's business operation. This is the reason why he demanded a legal and fiscal guarantee for Freeport.
Adkerson referred to Law No. 4 of 2009, regarding Mineral and Coal Mining that states that the CoW can continue to be valid. Although Freeport did not object with the IUPK, the company would like to continue operating under the original CoW in parallel with the IUPK.
PT Freeport has sent a letter to the Minister of Energy and Mineral Resources on Friday, February 17, 2017. The letter explains the differences in opinions between the company and the Indonesian government.
VINDRY FLORENTIN
