Jokowi is Optimistic that the Government Can Own 61 Freeport Shares – 2024-03-30 20:21:33

A number of Haul Trucks are operated in the PT Freeport Indonesia open pit mining area in Timika, Papua (Antara)

PRESIDENT Joko Widodo or Jokowi said the government was still negotiating regarding PT share ownership. Freeport Indonesia. According to Jokowi, the government is optimistic that it can own around 61% of the company’s shares.

“We are still in the process of negotiating and also preparing the regulations. But I am sure we can get that figure,” said the president following attending the Inauguration of the XIIth HIKMAHBUDHI Opening in Ancol, Jakarta, Thursday (28/3).

The President admitted that the negotiation process was going hard. The Indonesian government hopes that the increase in government shares in PT Freeport Indonesia will be decided soon.

“Yes, it’s been called negotiations for a long time. It’s been tough, really tough,” said the president.

President Jokowi said that initially the government only owned 9% of PT shares. Freeport Indonesia. However, during the negotiation process, the government now owns 51% of the shares.

On the other hand, PT Freeport Indonesia is intensively lobbying the government to provide certainty regarding the extension of PT Freeport Indonesia (PTFI) copper concentrate export relaxation, the validity period of which will expire in May 2024. Freeport wants this to be extended until December 2024. The President emphasized that The government wants negotiations regarding PT. Freeport Indonesia was completed first.

Also read: Smelter Project Expansion, Freeport Disburses IDR 3.7 T

“This negotiation needs to be completed first and then the next one will be taken care of. One thing is not finished yet,” added the president.

As reported, the government asked for Freeport’s commitment to complete the smelter in the JIIPE Java Industrial Zone, Manyar District, Gresik Regency, East Java. The project is promised to be completed in May 2024 and officially operational in June 2024. In other words, if it is completed on time, relaxation for PT. Freeport Indonesia can be extended.

President Jokowi said the government would finalize regulations regarding the extension of copper export permits for PT. Freeport.

Also read: Jokowi Inaugurates Freeport Indonesia Smelter Expansion in Gresik

“This regulation is to be completed first and then the negotiations can be finalized immediately. But as I see, I was targeting it not until June. As soon as possible. If possible, as soon as possible, at the latest in June,” explained the president.

Separately, President Director of PT Freeport Indonesia (PT FI) Tony Wenas explained the urgency of extending the export. Tony said the country might potentially lose up to US$2 billion in revenue if exports of copper concentrate were stopped, from June to December 2024.

“Yes, if we can’t export, state revenues will also decrease by around US$2 billion at current prices,” he said at the Presidential Palace Complex, Jakarta, Thursday (28/3).

Tony Wenas was present with Freeport McMoran Inc CEO Richard Adkerson and PT Freeport Indonesia Board of Commissioners Kathleen Quirk to meet with President Joko Widodo or Jokowi. The meeting discussed the progress of the construction of PT Freeport Indonesia’s smelter in the JIIPE Java Industrial Area, Manyar District, Gresik Regency, East Java. (Eng/Z-7)