Minister Expresses Confidence in Dispute Against Freeport

TEMPO.CO, Jakarta - Coordinating Minister for Maritime Affairs Luhut Panjaitan said that the government has taken steps to face PT Freeport Indonesia's lawsuit. Luhut said that the options provided by the Energy and Mineral Resources Minister did not violate any laws.

However, Luhut said that the government is ready to face the lawsuit if Freeport insisted on bringing the dispute to the international arbitration.

"It's fine. We're ready. We will serve them well," Luhut said at the Presidential Palace in Jakarta on Tuesday, February 21, 2017.

Luhut believes that the Indonesian government has an opportunity to win the dispute. Under Law No. 4/2009 on mineral and coal mining, Luhut said that Freeport should have fulfilled its obligations since 2009. Included in the obligations are the requirements to divest 51 percent of its shares and construct a smelter.

"Freeport has not built a smelter and divested [its shares]. So, what else?" Luhut revealed.

Compared to other foreign companies in Indonesia, such as Chevron, Luhut said that Freeport should have been professional. Luhut viewed that laying off its employees was an unprofessional move.

Luhut explained that the dispute with Freeport was a business-to-business issue. Luhut asserted that as a sovereign country, Indonesia cannot be dictated. Therefore, Freeport Indonesia is expected to be professional in addressing existing issues.

On Monday, February 20, 2017, Freeport-McMoRan CEO Richard Adkerson said that his company gave a 120-day period to Indonesia to consider the dispute between the government and Freeport.

Adkerson said that Freeport would bring the dispute to the international arbitration if the government failed to meet Freeport's demands.

ADITYA BUDIMAN