Bahlil Ensures Freeport IUPK Extension Is Completed Before New Government

Investment Minister Bahlil Lahadalia (Photo: Antara)

JAKARTA - Investment Minister/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia ensured that the extension of PT Freeport Indonesia's special mining business license (IUPK) will be carried out this year, before the change of new government.

"We will take care of the extension before the government is over," he said in a Public Lecture at IPDN, quoted from YouTube, Ministry of Investment, Jakarta, Thursday, July 11.

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

Bahlil said that since 2018, Indonesia has held 51 percent of Freeport shares consisting of 10 percent held by BUMD Papua, while 41 percent is held by the government through MIND ID.

Furthermore, Bahlil said that along with the extension of Freeport's IUPK, Indonesia would get an additional 10 percent stake.

"So Indonesia's total shares in Freeport are 61 percent," he explained.

Previously, it was reported that the Minister of Investment/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia revealed that the negotiation process for the extension of PT Freeport Indonesia's special mining business license (PTFI) had reached 98 percent.

In addition to the addition of shares, Bahlil also said that both parties had approved the construction of a new smelter in Papua. But unfortunately, Bahlil did not explain where the area was intended.

"I have negotiated with Freeport. And almost 98 percent, the points have been agreed. One of them is the additional 10 percent stake, then building a smelter in Papua," he said at the BKPM office, Jakarta, Friday, June 7.