ESDM Denies Issuing New Contract for Freeport

TEMPO.CO, Jakarta - The Energy and Mineral Resources (ESDM) Ministry said mining permit for PT Freeport Indonesia will not be decided soon since granting the mining permit will only be done two years before the contract ends in 2019.

"The process will be overseen by the new government," said ESDM deputy minister Susilo Siswoutomo yesterday. This statement has also denied the claim by PT Freeport Indonesia director Rozik Boedioro that the government has permitted and is ready to issue a new mining contract for Freeport.

According to Susilo, Freeport’s contract will be in the form of Contract Mining Business Permit as regulated in the Mineral and Coal Law. "The permit is granted if the required steps and processings are fulfilled."

R. Sukhyar, director general for mineral and coal, said the continuity of Freeport’s contract can only be determined two years before the contract ends. "They wanted to extend the contract earlier, but it is not allowed," Sukhyar told Tempo last Friday.

In the contract amendment that is being compiled, the government still includes the investment by [other] mining companies. "We mention that a company is investing so that the next government mulls this," Sukhyar added.

The explanation in that amendment, however, is not a guarantee for companies to get extended operation. "It’s still the government's decision. If the contract is stopped, other companies can replace the investment," said Sukhyar.

AYU PRIMA SANDI