REPUBLIKA.CO.ID, JAYAPURA -- PT Freeport Indonesia has vowed to boost economic development in Papua after it receives a guarantee that its contract to operate in the region will be extended following its expiration in 2021.

Chairman of the Board of Freeport McMoRan Inc. James R. Moffett, accompanied by President Director of Freeport Indonesia Maroef Sjamsoeddin, made the commitment during a meeting with President Joko Widodo at the State Palace here on Thursday.

During the meeting, Freeport presented its long-term investment plan for Papua and vowed to study the aspirations of the provincial government, according to a press release received here by Antara.

Freeport has also agreed to reduce its concession area to 90.360 hectares, including handing over the prospective Wabu Block to the central and regional governments.

In addition, the company agreed to carry out a part of the deals in connection with the amendment of its working contract, including reducing its concession area and increasing state income.

It will also increase the capacity of and expand its domestic smelter, improve the national holding of its shares, and give priority to local workers, goods and services.

The Indonesian government and Freeport have yet to conclude discussions on state revenue, guarantee for the extension of the company's operation, and business certainty for the government.

"We will always abide by the law in carrying out our operations. We believe the government will grant us legal and fiscal certainty with regard to the extension of our contract, in line with our multibillion dollar investment plan for the development of an underground mine and expansion of a domestic smelter," Moffett affirmed.

"In connection with domestic procurement, I have asked the president director of Freeport Indonesia to cooperate with state-owned companies," he added.

President Director of Freeport Indonesia Maroef Sjamsoeddin stated that the company's investment will continue to benefit and provide sustainable added value to the country, the people of Papua, and all workers and shareholders, in line with national aspirations that will be included in the amended working contract.

On June 10, Freeport Indonesia received directives from the government regarding the extension of its contract in connection with its investment plan.

The company has invested US$4 billion. Till 2014, it invested some US$15 billion to develop an underground mining complex and around US$2.3 billion to expand a smelter.

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