ASIATODAY.ID, JAKARTA – President of the Republic of Indonesia Joko Widodo (Jokowi) indirectly rejected the relaxation of PT Freeport Indonesia’s (PTFI) export permit.
Jokowi emphasized that the government is more focused on completing negotiations for PT Freeport Indonesia’s contract extension first, rather than managing the relaxation extension of the company’s copper concentrate export permit.
It was recently discovered that Freeport was lobbying the government to extend the relaxation of copper concentrate exports until December 2024. This is because Freeport’s new smelter in Gresik, East Java is claimed to need time to be able to produce at full capacity after commissioning in May 2024.
“The negotiations need to be completed first and then the next thing will be handled. “Just one is not finished,” said Jokowi to journalists after attending the Indonesian Buddhist Student Association Congress in Ancol, North Jakarta, Thursday, March 28 2024.
Furthermore, President Jokowi said that currently the government is preparing regulatory revisions to accommodate the accelerated extension of Freeport’s special mining business permit (IUPK).
Meanwhile, the regulation intended to be revised is Government Regulation (PP) Number 96 of 2021 concerning the Implementation of Mineral and Coal Mining Business Activities.
Based on Article 109 PP Number 96 of 2021, requests for an extension of the period for production operations for mining metal minerals or coal are submitted to the minister no sooner than 5 years or no later than 1 year before the end of the period for production operations.
Referring to these regulations, Freeport’s IUPK, which expires in 2041, should only be processed in 2036 at the earliest. The revision of PP Number 96 of 2021 will allow Freeport to apply for an IUPK extension more quickly without having to wait until 2036.
Meanwhile, Freeport’s contract is planned to be extended to 20 years. As compensation, the government requested an increase in share ownership in Freeport to 61% from previously only 51%.
“The regulations are finalized first, then negotiations can be finalized immediately. However, I see, I was targeting not until June. As soon as possible. “If possible, as soon as possible, at the latest in June,” concluded Jokowi. (ATN)
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