Freeport CEO Comments on Shares Negotiation Process

TEMPO.CO, Jakarta - PT Freeport Indonesia's President Director, Tony Wenas, revealed that there have been no discussions regarding the increase in state shares in Freeport over the past week. Tony conveyed this concerning the increase in state shares in Freeport to 61 percent.

"Basically, there has been almost no activity this week," said Tony when attending the Eid al-Fitr open house at the official residence of Minister of Investment Bahlil Lahadalia in South Jakarta, Wednesday, April 10, 2024.

Tony explained that discussions on increasing state shares require time due to the administrative process that must be undertaken, including the revision of Government Regulation No. 96 of 2021 concerning the Implementation of Mineral and Coal Mining Business Activities.

"Well, there's a bureaucratic process, administrative work, and PP 96 also needs to be revised, you know," he said.

Tony claimed that Freeport does not face obstacles regarding the increase in state shares. According to him, Freeport and the Indonesian Government have the same views on the matter.

"In general, everyone already has a mutual understanding," he said.

When asked about the extension of Freeport's contract, Tony declined to answer. He redirected the question to Bahlil.

"Ask Mr. Bahlil about the extension of the IUPK issuance," he said.

Previously, President Joko Widodo or Jokowi stated that he did not want to discuss the extension of PT Freeport's copper concentrate export permit. Jokowi mentioned that the government is still in the process of negotiating the increase in Freeport's shares and contract extension, along with its regulations.

"These negotiations need to be completed first before dealing with the next steps," said Jokowi after an event in Ancol, North Jakarta, Thursday, March 28, 2024. "Well, negotiations have been going on for a long time. It's been very tough."

Freeport has expressed hope several times that the permit for copper concentrate exports will remain open. The company should not have been able to export copper concentrate since last year because the government banned the export of several raw minerals starting June 10, 2023, to encourage increased value-added of minerals domestically.

However, this regulation is exempted for four companies that have completed half of their smelter construction. Freeport is one of them.

Freeport is allowed to export copper concentrate until May 31, 2024, with a fine of 20 percent of the total value of raw mineral sales abroad per period. The company must also pay an export duty of 7.5 percent.

SAVERO ARISTIA WIENANTO

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