Freeport Boss Reveals Urgency Revision Of PP 96/2021

JAKARTA - President Director of PT Freeport Indonesia (PTFI) Tony Wenas revealed the urgency of revising Government Regulation (PP) number 96 of 2021 concerning the Implementation of Mineral and Coal Mining Business Activities.

Tony said that the revision of PP 96 was actually needed by all mining companies and the mining industry of the Republic of Indonesia. He reasoned that the mining industry is a long-term investment so that if the extension of the permit is carried out within 5 years, it is not possible.

"If the extension can only be submitted 5 years before it ends, then the time is not enough. Later in the end there will be a decline in production," Tony said in Mining ZOne quoted Monday, March 25.

Tony said the decline in mining production was also caused by late investment.

Tony gave an example of Freeport's underground mine, which began to be mined since 2019, has actually started investing since 2004 aka 15 years earlier.

"We need 15 years before we can mine him. So if we just apply for an extension and it is approved by 2036, we can only mine it in 2050. So there is a break," Tony explained.

For this reason, the point in the PP revision is that the extension of mining permits does not have to be carried out 5 years before the permit ends.

"So that we from investors need certainty, we invest for exploration, we have received an extension," concluded Tony.

Previously, the Minister of Investment or Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia revealed that the government would accelerate the revision of Government Regulation (PP) number 96 of 2021 concerning the Implementation of Mineral and Coal Mining Business Activities.

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.