Tuesday, 12 November 2019

ESDM: IUPK Draft for Freeport Completed

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Laila Afifa

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  • TEMPO.CO, Jakarta - The Ministry of Energy and Mineral Resources (ESDM) said it has completed the draft of a special mining business permit (IUPK) for Freeport Indonesia.

    The ESDM's director general of Mineral and Coal Bambang Gatot Ariyono said that all parties are still discussing the other details of IUPK, such as the environmental and financial aspects. “ESDM has completed it,” he said, Monday, December 17.

    Bambang hoped that all forms of transaction settlement could be completed by the end of this year so that the issue will be resolved quickly. Currently, Freeport Indonesia still has a temporary IUPK that expired in December 2018.

    According to Bambang, his party could issue an IUPK for 20 years after Freeport’s contract expired in 2021. However, even though the IUPK could be extended for up to 20 years, that does not mean it would be immediately given until 2041.

    He reasoned that the contract period is a maximum of 2x10 years, so the permits that will be directly granted are only until 2031.

    “So, each licensing period has requirements that must be met,” he said.

    Previously, as reported by a spokesman for PT Freeport Indonesia Riza Pratama, his side was still attempting to get the permanent IUPK permit to be granted directly until 2041. This means that Freeport IUPK is sought without having to extend it for 2x10 years.

    BISNIS.COM