Minister Bahlil Requires Freeport To Build Smelters In Papua

Investment Minister/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia (ANTARA/Maria Cicilia Galuh)

JAKARTA - Investment Minister/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia said the government required PT Freeport Indonesia (PTFI) to build a metal mineral refining and processing plant or smelter concentrate in Papua.

According to Bahlil, this is one of the requirements from the government to extend the Special Mining Business License (IUPK). Previously, another requirement was to provide 10 percent of PTFI's shares to state-owned companies through mining BUMN holding, Mind ID.

"We ask that there be a smelter in Papua. Why? It concerns the sovereignty and self-esteem of the Papuan people as well, we must not continue to be deceived," Bahlil said as quoted by ANTARA, Friday, June 30.

However, Bahlil could not confirm the exact location of the establishment of the concentrate. He also mentioned several areas that made it possible to build purification and processing factories, such as Fakfak, West Papua or Timika, Central Papua.

According to Bahlil, this will be determined based on the results of a feasibility study (FS) which is currently still in process.

"We'll see the FS, the FS hasn't yet. It can be in Timika, it can be anywhere. It can be in Fakfak. But we haven't specifically been there yet," said Bahlil.

PTFI received an extension of the IUPK from the government after 2041 on the condition that 10 percent of the shares were given. Currently, the Indonesian government has 51 percent of PTFI shares. If these conditions are met, then Indonesia will own 61 percent of shares.

The addition of shares aims to ensure that the exploration of gold and copper in Indonesia can reach 100 percent by 2052. This contract extension plan is also said to be still under discussion.