REPUBLIKA.CO.ID, JAKARTA -- Coordinating Minister of Maritime Affairs Luhut Binsar Panjaitan stated here, Tuesday, the negotiation with gold and copper mining company PT Freeport Indonesia had gone in accordance with the plan.
"Energy and Natural Resources Minister Ignasius Jonan reported to me last night that talks with the copper mining company had gone smoothly," Luhut said at the Maritime Affairs Ministry office in Jakarta.
Concerning the employee unrest at the company, Luhut said Freeport had offered a "golden handshake" scheme before dismissing its laborers.
"There is no serious issue with Freeport, as far as I am concerned. Regarding the dispute with its laborers, the company has introduced a 'golden handshake' scheme that entails giving Rp2 million to every employee the company dismissed," he remarked.
The minister revealed he had been invited by the US trade minister to talk about the global economy, as well as the dispute at Freeport.
During the meeting, Luhut explained that the relation between the Indonesian government and the company was stable.
"The only problem is that PT Freeport has refused to divest 30 percent of its shares until 2019. Earlier, I mentioned that if the company wanted to prolong its contract, it must follow the regulations in the country," Luhut stressed.
He pointed out that if the US government actively campaigns for "America First," the Indonesian government would introduce "Indonesia First" while arranging the country's policy.
Foreign companies are welcome to invest in Indonesia, but they have to follow the country's regulations, Luhut added.
Earlier, Jonan hoped the negotiation with Freeport could be completed in the next two months following the second talk held on May 4.
On a different occasion, Energy and Natural Resources Ministry's Secretary-General Teguh Pamudji affirmed the government had allocated some additional time for setting the technical rules for Freeport's six-month operation in the country until October 10.
"We still have five months to talk about this matter; the minister (Jonan) expects the negotiation to be completed in a month or two," Pamudji reiterated.
At least four issues, including investment stability, tax, share divestment and the company's future mining operation, were discussed during the second talk between the Indonesian government, represented by Jonan and his deputy Arcandra Tahar, and the US-based Freeport McMoran's CEO Richard Adkerson earlier this month.
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