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Monday, 21 September 2015 - 17:02 WIB

Government Signals to Extend Freeport Deal

Freeport activities - Jubi

Freeport activities - Jubi

Freeport activity - Jubi

Freeport activity – Jubi

Jakarta, Jubi/Tempo – Energy and Mineral Resource Minister Sudirman Said said Monday, September 21, he supports PT Freeport Indonesia’s step to continue investing in the country. The government is seeking a way so that a decision can be taken without violating regulations and without causing turmoil in society.

“What is most needed and awaited by Freeport is the decision on the investment which we have not currently decided due to the constraint of Government Regulation,” Sudirman said when visiting Freeport mine on Monday (21/9/2015).

The regulation referred by Sudirman is Government Regulation No.77 Year 2014 that regulates the quickest time limit for contract extension is two years and no later than six months before the deal expires.

Evidently, in the temporary study by the ministry, the time hampers investment, especially the ones with great value including Freeport’s underground mining.

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This revision of the regulation is included in the Energy and Mineral Resource version of economic policy package. The changes plans to extend the deadline contract of mineral metal mines to become 10 years at the longest and two years at the quickest. Meanwhile non-metal minerals deals will be five years at the quickest and two years at the latest.

After 30 years, Freeport contract will expire in 2021. Its the second agreement since the company first operated in Indonesia in 1967.
Freeport is currently building a processing and refining facility, as set in the Constitution No.4 Year 2009 on Mineral and Coal. The company based in United States (US) has also confirmed its capability to switch cooperation plans from Work Contract to Special Construction Permit.
Sudirman said his effort is backed by President Joko Widodo.
“Freeport is not an exception, Freeport must be supported in order for its operation to continue,” he said. (*)

 

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