Bahlil Calls Freeport Slow In Preparing Permits For Extension Of IUPK

Investment Minister Bahlil Lahadalia (Photo: Youtube catch)

JAKARTA - Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia assessed that PT Freeport Indonesia (PTFI) was slow in preparing requirements for the application for an extension of the post-2041 special mining business permit (IUPK).

Bahlil said that actually Freeport's preparation for the IUPK submission was almost complete, but Freeport was still slow in preparing a number of conditions proposed by the government.

"The IUPK Freeport is now almost finished, but Freeport seems a bit slow, slow in preparing various conditions that are being negotiated, including negotiations with SOEs that have not been completed. So don't ask the government, ask Freeport too," Bahlil told the media crew when met after the handover of the position of Minister of Energy and Mineral Resources in Jakarta, Monday, August 19.

On a different occasion, the Minister of Energy and Mineral Resources for the 2019 period, Arifin Tasrif, revealed that the state-owned mining holding company, PT Mineral Industri Indonesia (MIND ID) did not want to spend 10 percent of PTFI's divestment process.

Arifin also said that the process of divesting PTFI shares from 51.2 percent to 61.2 percent had not been carried out.

"We don't want to pay, we will calculate it later from the part that can be added in the future, but we haven't done it yet," said Arifin, Friday, August 2.

Previously, while still serving as Minister of Investment/Head of the Investment Coordinating Board (BKPM), Bahlil ensured that the extension of PT Freeport Indonesia's special mining business license (IUPK) would be carried out this year, before the new government change.

"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.