Bahlil Affirms Indonesia Will Control 61 Percent Of Freeport's Shares

JAKARTA - Investment Minister/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia said that the government was accelerating the revision of Government Regulation (PP) Number 96 of 2021 concerning the Implementation of Mineral and Coal Mining Business Activities.

"We will accelerate the decision process. So PP 96/2021 we make adjustments to acceleration in providing sustainable investment certainty, let alone big and this is not treated specifically to one company or two companies," Bahlil said at a press conference in Jakarta, Monday, March 18, 2024.

Bahlil revealed, after the revision of the PP, Indonesia will add share ownership in PT Freeport Indonesia (PTFI) to 61 percent, from the previous 51 percent.

"Once PP 96 is completed, God willing, if that happens, the potential for additional Freeport shares for the Republic of Indonesia, which will be 51 percent in the future, will be 61 percent, meaning that Freeport will no longer belong to other people, but ours because our shares are 61 percent," he said.

For information, Government Regulation Number 96 of 2021 concerning the Implementation of Mineral and Coal Mining Business Activities if it has not been revised, PTFI cannot be granted a Special Mining Business License (IUPK) faster. Because the mining extension requirements based on Article 109 Paragraph (4) can only be submitted to the Minister no later than 5 years or no later than 1 year before the end of the period of production operations.

On the other hand, PTFI's IUPK will only expire in 2041 so that Freeport can only apply for an extension of the permit in 2036 or no later than 2040.