Bahlil Restui Freeport Exports Copper Concentrat, But...

Illustration (Photo: Doc. ANTARA)

JAKARTA - Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia approved the granting of a copper concentrate export license to PT Freeport Indonesia.

However, Bahlil said the export permit would be granted in stages.

The general chairman of the Golkar Party said that previously he had held a limited meeting (ratas) with the Coordinating Minister for Economic Affairs, Airlangga Hartarto and tel, which received an investigative report stating that the incident was purely an accident.

"Alhamdulillah, yesterday we decided on a middle ground that the factory will be completed in June and Freeport has made statements and reports from the police and from insurance as well and gradually we are still providing space to export concentrate," Bahlil told the media crew, Wednesday, February 19.

Bahlil added that another consideration from the government is that currently 51 percent of PTFI's shares are owned by Indonesia and have provided a lot of income for Indonesia.

The reason is, after the fire occurred, the operational activities of the new smelter had to be stopped and had an impact on the fate of the workers.

"If not, tens of thousands of employees will be laid off. And the second is the potential for Freeport's revenue and the state will also be lost," said Bahlil.

Separately, the President Director of PTFI, Tony Wenas, revealed that the potential loss of state revenue due to the termination of copper concentrate export activities reached more than 5 billion US dollars.

In front of Commission XII of the DPR RI, Tony said the potential for state revenue was reduced by 4 billion dollars or equivalent to Rp65 trillion, with dividend details of 1.7 billion US dollars or Rp28 trillion, tax of 1.6 billion US dollars or Rp26 trillion, export exit duties of 0.4 billion or Rp6.5 trillion and royalties of 0.3 billion US dollars or Rp4.5 trillion.

As for the impact on the regions if they do not export the copper concentrate, said Tony, among others, the reduction in regional income in 2025 is estimated at IDR 5.6 trillion, with details of Central Papua Province at IDR 1.3 trillion, Mimika Regency at IDR 2.3 trillion and other districts in Central Papua at IDR 2 trillion.

Finally, the potential reduction in the allocation of PTFI's partnership funds for the community development program of US$60 million or Rp960 billion in 2025.

"In accordance with PTFI's IUPK, concentrates can be exported if there is a state of violence but it is necessary to adjust the ESDM Permen to regulate the export because of the state of this violence," said Tony.