Dian Kusumo Hapsari
IDXChannel - Indonesian Investment Minister Bahlil Lahadalia announced that the negotiations with mining company PT Freeport Indonesia (PTFI) have reached a 98 percent agreement, including the addition of government shares.
"I have been negotiating with Freeport, and nearly 98 percent of the points have been settled," he said in Jakarta on Friday.
Bahlil said that the government seeks to maximize state income by increasing its stake in PTFI to 61 percent from 51 percent. Consequently, the government has negotiated to extend the company's mining permit until 2061.
He also stated that the government aims to prevent a revenue decline due to PTFI's anticipated production decrease post-2035.
Bahlil noted that Freeport, valued at over USD20 billion, is currently engaged in underground mining, with peak production expected in 2035.
"After that, a production drop is predicted, while underground exploration requires a 10–15-year timeframe," he remarked.
