Ask To Extend Export Permit, Bahlil Ensures Freeport Is Still Fined

JAKARTA - Investment Minister/Head of BKPM Bahlil Lahadalia opened his voice regarding the request of PT Freeport Indonesia (PTFI) regarding the extension of the export license for copper concentrate from May 2024 to December 2024.

Bahlil said that basically the government could provide export permit assistance to PTFI, but he ensured that the company would still be subject to sanctions in the form of fines.

"Actually, it's okay, but make sure there are sanctions they get because we have stopped (exports). Relaxation can be given but there is compensation that must be paid to the state," said Bahlil, quoted on Tuesday, December 12.

This fine is imposed because the construction of the mineral refining facility has not been completed.

Bahlil also emphasized that Freeport as a business actor must comply with the regulations issued by the Indonesian government and vice versa.

"I assure you that the state can no longer be regulated by entrepreneurs. Entrepreneurs must be regulated by the state through the rules. So the old style can't be done anymore. If you want to export again, okay but you apply compensation that a country must get from exports," said Bahlil.

Just so you know, the Supreme Audit Agency (BPK) reported the potential value of administrative fines that need to be paid by PTFI to Indonesia for the delay in the construction of a smelter of 501.95 million US dollars.

Previously, PTFI President Director Tony Wenas again expressed the company's desire that the relaxation of copper concentrate exports would be extended until the purification or smelter facility was fully operational. Previously, the government had issued an export relaxation permit until May 10, 2024.

"We hope that the relaxation of export copper concentrate can continue until the smelter is fully operational," said PTFI President Director Tony Wenas in his statement to the media, Tuesday, November 28.

Tony said that if he was optimistic that the second PTFI smelter would start operating at the end of May 2024 and gradually ramp-up full production until December 2024.

"The smelter progress is currently estimated at 83 percent. PTFI continues to complete several works to complete physical construction at the end of December 2023," he continued.