TEMPO.CO, Jakarta - The government will soon formulate a state revenue scheme from Freeport Indonesia. The scheme will be designed after the government meets and the US-based miner reaches an agreement in the negotiations over its mining contract.
One of the points to agree on is the increase in state revenues contributed by the mining company.
"[Future] state revenue from Freeport Indonesia's operations must be greater than what we received through the Contract of Work," Finance Minister Sri Mulyani said in a press conference in Jakarta, Tuesday, August 29.
Sri Mulyani did not elaborate on the composition, percentage, and amount of state income, saying that there are other elements to be taken into accounts such as Non-Tax State Revenues (PNBP), royalties, and taxes.
Details of the scheme, said Sri Mulyani, will be attached to the Special Mining Business License granted to Freeport Indonesia.
In addition to state revenues, another agreement that needs to be reached is the 51-percent divestment of Freeport Indonesia's shares for national ownership. Energy and Mineral Resources Minister Ignatius Jonan said the government is currently negotiating the details of the stages and timing of the divestment.
Jonan said that the divestment scheme will also be attached to the Special Mining Business License granted to Freeport Indonesia.
The next agreement is related the construction of smelter by Freeport Indonesia within five years after the IUPK is issued, or no later than 2022—unless a force majeure happened within said period.