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Minister: Freeport Like a Tenant Trying to Control the Landlord

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23 March 2017 19:52 WIB

Coordinating Maritime Affairs Minister Luhut Binsar Panjaitan. TEMPO/Dhemas Reviyanto

TEMPO.CO, Jakarta - Coordinating Minister for Maritime Affairs, Luhut Binsar Pandjaitan, considers PT Freeport Indonesia as a tenant who is renting a house in Indonesia until 2021. The never-ending negotiation that is currently ongoing between the Indonesian government and the U.S.-based mining company, according to Luhut, seems like a tenant that is already way too comfortable living in the rent house and even has made up their own rules.

“I think Freeport is in love, but I [Indonesia] don’t want them anymore. There’s a requirement, but Freeport doesn’t want it. I’m the one with the rules, not you. [It looks like] it’s reversed now,” Luhut said on Thursday, March 23, 2017.

Read: Freeport Explains Refusal on Mining Permit

and Freeport Gives 120 Days to Government

Despite this, Luhut explained that the government continues to open the negotiation with Freeport. He also emphasized that Indonesian government will never be controlled by Freeport.

Up until this moment, both sides continue to conduct negotiations in order to reach an agreement. The Indonesian government has given Freeport a chance in the form of a Special Mining Business Permit (IUPK) as a form of compromise.

Read: Freeport Indonesia May Seek Arbitration

Other than that, the Indonesian government continues to urge Freeport to fulfill the requirements contained in the mining permit as mentioned in the Government Regulation No. 1/2017. It states that mining companies must fulfill the existing requirements in order to be able to export their mining products, such as establishing a smelter facility, switch to the IUPK, and require the mining company to conduct divestment.

“The negotiation is currently ongoing. It isn’t difficult. If you (Freeport) refuse then it’s done by 2021. If you don't want to comply [with the rule], you may continue to export but it all ends by 2021,” Minister Luhut said.

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