To formalize the extension, Bahlil requested Freeport’s President Director, Tony Wenas, to sign an affidavit under oath. This statement will affirm that, should the smelter not be operational by June 2025, Freeport will face penalties, including the imposition of a maximum tax on its exports.

Although the exact tax rate has not been disclosed, Bahlil assured that the government would impose the highest possible tax to enforce compliance.

Currently, the exact volume of copper concentrate Freeport is permitted to export has yet to be determined. Bahlil mentioned that the total volume will be calculated based on the available copper concentrate at Freeport’s facilities. This approach ensures that the relaxation aligns with the actual available stock while balancing the company’s operational recovery.

This regulatory adjustment is part of a broader effort by the government to manage the impact of the fire at Freeport’s smelter, which has had significant financial implications. According to Freeport’s leadership, the fire has caused an estimated revenue shortfall of approximately Rp 65 trillion. The relaxation of export restrictions is seen as a necessary measure to mitigate some of the financial losses caused by the incident and ensure that Freeport’s operations can recover effectively.

In the meantime, Freeport has been working diligently to repair and rebuild the damaged smelter. The company has committed to restoring the facility’s operations to full capacity by the end of 2025, ensuring that its copper production is not severely affected in the long term. However, the relaxation permit offers crucial short-term relief, enabling the company to continue its copper exports while addressing the infrastructure challenges posed by the fire.

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