Freeport’s License Extension: Indonesian Government and Mining Giant Close to Agreement

JAKARTA, RAKYAT NEWS – In a significant update on the status of PT Freeport Indonesia’s Special Mining Business License (IUPK), Energy and Mineral Resources Minister (ESDM) Bahlil Lahadalia has reported that the extension negotiations are nearing completion.

Bahlil who recently assumed office in ESDM, shared that while the government has largely fulfilled its obligations, delays have been encountered due to Freeport’s slow progress in meeting specific requirements.

Freeport-McMoRan Inc commonly referred to as Freeport, is a major American mining company. Headquartered in Phoenix, Arizona, it is one of the world’s largest producers of copper and gold. The company operates large mining projects around the globe, including in the United States, Chile, and Indonesia.

One of its most significant operations is PT Freeport Indonesia, which runs the Grasberg mining complex in Papua, Indonesia. This site is known for being one of the largest gold and copper mining operations in the world. Freeport-McMoRan has faced various challenges, including negotiations with the Indonesian government over mining licenses and environmental and labor concerns.

During a press briefing following the handover ceremony for the Energy and Mineral Resources Ministry, Bahlil explained that the government has been working diligently to finalize the IUPK extension.

“The extension process is almost complete, but Freeport has been lagging in meeting the necessary conditions,” he stated.

He noted that the negotiation process involves additional discussions with state-owned enterprises, which have also contributed to the delays.

The Minister clarified that these setbacks are not solely the fault of the government. “The slow pace is primarily due to Freeport’s delay in fulfilling various prerequisites. It’s important for the public to understand that the government is not solely responsible for the holdup,” he emphasized.