Ilustration
Jayapura, 13/4 (Jubi) – Reports that the Indonesian government had secretly renegotiated its contract with PT Freeport Indonesia and PT Vale Indonesia were false, Coordinating Minister for Economic Affairs, Hatta Rajasa, said.
“There has been no extension at all, because there are some strategic plans that can be discussed by new government. It is a deep discussion,” he said in Jakarta on Friday as reported by analisadaily.com.
The mining contract renegotiation process has not been a priority for the current administration because the mine contract will only expire in 2021, Rajasa was quoted as saying.
“It’s wrong if not negotiated. However, is it urgent or not if the contract ends in 2021. If it isn’t urgent, let the new government deal with. It needs to be completed and does not need to be postponed,” he said.
Previously, local media reported that the government would extend the contract of Freeport and Vale to two times 10 years, or 20 years, in accordance with the request of the companies. This means, Freeport’s contract will end in 2041 while Vale’s will extend to 2045. In early April, R. Sukhyar, Director General of Mineral and Coal Ministry of Energy and Mineral Resources (ESDM) reportedly acknowledged that the government would grant the application for the renewal of the contract of Freeport and Vale.
“The companies are asking definite extensions as they have made large investments. It is the main point of our meeting,” Sukhyar as reported Kontan.co.id.
Freeport’s vice president of Corporate Communications PTFI, Daisy Primayanti said that she had no knowledge of such approval.
“I have not heard that the process is approaching the final,” Primayanti wrote via text message to Jubi, last week. (Jubi/Victor M/Tina)
