Freeport Exports Stopped Can Lose IDR 120 Trillion Per Year

Minister of Energy and Mineral Resources Arifin Tasrif (Photo: Doc. Antara)

JAKARTA - The ban on copper exports for PT Freeport Indonesia (PTFI) is considered to carry potential losses.

This was conveyed by the Minister of Energy for Mineral Resources (ESDM) Arifin Tasrif after attending a meeting with President Joko Widodo to discuss mining at the Presidential Palace in Jakarta, Monday, April 3.

"Oh for sure (there is a potential loss). If for example it is prohibited, the loss is large because we (government shares in PTFI) are 51 percent. And then there are more incomes in the form of taxes by the government," said Arifin quoting Antara.

As is known, the export license limit for PTFI crude copper is only until June 2023. The government wants copper to be processed and has added value before exporting.

Arifin said that based on estimates, the annual loss of stopping PTFI's copper exports could reach US$8 billion, equivalent to Rp120 trillion (exchange rate of Rp14,995 per US dollar).

According to Arifin, the actual export license for copper in the future depends on the development of smelter development, which so far has reached 60 percent based on reports per first quarter of 2023.

"So progress is quite good. Only if the export ban is enforced, the government's shares are mostly 51 percent, not yet income (tax). This is what we have to pay attention to," said Arifin.

He revealed that the government will soon discuss relaxation options related to the ban on the export of copper.