TEMPO.CO, Jakarta - Finance Minister Sri Mulyani Indrawati said that her ministry will continue to provide options to PT Freeport Indonesia to allow the company to resume its business in Indonesia.
Sri Mulyani said that Freeport's inability to resume business operations will result in adverse effects for both the company and the government. Because, according to Sri, Freeport is a public company which shares are listed in the stock market.
"Freeport is a publicly listed company. If it stops operating, its shares will fall. So there's no winner or loser in this case. If we continue to focus on negative things, it will not only bring bad effects to [Indonesia] but also to Freeport Indonesia," Sri said at the Coordinating Ministry for Economic Affairs office on Wednesday, February 22, 2017.
Sri added that the Finance Ministry will propose adjustments to the company to allow to maintain its business. However, Sri also reminded the government to remain consistent with prevailing laws and regulations, specifically Law No. 4 of 2009 on Mineral and Coal.
According to Government Regulation No. 1 of 2017, a mining company that owned contract of work (CoW) must change its status to Special Mining License (IUPK) to be able to continue operating in Indonesia. However, Freeport consistently refused to change its status because the company believed that the IUPK will incur losses to the company.
As a solution to the problem, the government has offered a six-months transitional period to allow both parties to review the terms and conditions in the CoW and provisions listed in the Coal and Mineral Law, and how they can benefit from both regulations.
Sri hoped that the transitional period would result in a rational and publicly transparent proposal on a new contract. "Therefore, what is best should be maintaining mutual interests. Economic activities are important for Indonesia, for Papua, and for Freeport," Sri concluded.
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