Bahlil: Freeport Permit Extension Until 2061 Almost Final

Investment Minister Bahlil Lahadalia (Photo: dock. Antara)

JAKARTA - Investment Minister/Head of BKPM Bahlil Lahadalia revealed that the process of extending the special mining business permit (IUPK) of PT Freeport Indonesia (PTFI) is almost final.

For your information, PT Freeport Indonesia will get an IUPK for 20 years, namely until 2061 after the end of the contract in 2041.

Furthermore, Bahlil said to realize the extension of the permit, the government is currently revising Government Regulation (PP) Number 96 of 2021 concerning the implementation of mineral and coal mining business activities.

"Oh, it's final, it's almost final, just waiting for the PP," said Bahlil at the Ministry of Investment Office, Jakarta, Monday, April 29.

Bahlil revealed that Freeport's IUPK contract extension has several aspects of consideration. He said, currently Indonesia owns 51 percent of Freeport's shares, while the peak of Freeport's production will occur in 2035.

"Now the peak of Freeport production is 2035, because now we are running an underground," said Bahlil.

If after 2035 exploration activities are not carried out, continued Bahlil, then production can run out. On the other hand, exploration in underground mining areas takes 10 to 15 years.

"So if we don't renew now for them to explore, just get ready for 2040, Freeport doesn't operate," he said.

Bahlil said this contract extension was not a problem. Especially considering, the majority of Freeport's shares belong to Indonesia.

Second, this belongs to us. This belongs to us ko, goods for us are not allowed. And this is an opportunity, there is an option to add 10 percent shares at a very cheap and very cheap price," he said.