The Minister Of Energy And Mineral Resources Explains The Reason For The Extension Of PT Freeport

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

JAKARTA - Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif said that the extension of PT Freeport Indonesia's special mining business license (IUPK) was motivated by the company's commitment to build new smelters in Papua.

"PT Freeport Indonesia will build a new smelter again, then it will be divested again according to the provisions. The condition is that if you want to extend it, the income for the government must increase," said Arifin Tasrif, quoted from ANTARA, Friday, December 8.

He said Article 196 of Law (UU) Number 3 of 2020 concerning Amendments to Law Number 4 of 2009 concerning Mineral and Coal Mining, allowing mining companies that are still operating, for example Freeport Indonesia to extend permits if there are still gold and copper reserves.

For this reason, the government is currently harmonizing the rules through the revision of Government Regulation (PP) Number 96 of 2021 concerning the Implementation of Mineral and Coal Mining Business Activities.

"It can extend according to the reserve. It could be 20 years or other amounts according to the adequacy of reserves and other conditions," he said.

It is known that Freeport's IUPK will end in 2041. There are several conditions requested by the government, among others, that Indonesia's share ownership through MIND ID is added by 10 percent to 61 percent.

In addition, Freeport is also required to build a new smelter in the Fakfak Integrated Area, West Papua.

This was revealed after President Joko Widodo's meeting with Freeport Chairman McMoRan Richard Adkerson on the sidelines of a visit in Washington DC, United States last November.

During the meeting, President Jokowi welcomed the discussion about the addition of Freeport shares in Indonesia to the extension of the mining permit which had reached the final stage.

"I am pleased to hear that the discussion on the addition of 10 percent of Freeport's shares in Indonesia and the extension of mining permits for 20 years has reached the final stage," said President Joko Widodo.