REPUBLIKA.CO.ID, JAKARTA -- PT Freeport Indonesia has asked for easing of conditions for extending the permit for concentrate exports, Sudirman Said, energy and mineral resources minister said here Wednesday.
"I have received an update from the director general which in essence states that they would try meeting the request made in view of the current global commodity condition as well as their financial condition," he said.
The minister expressed his appreciation at PT Freeport Indonesia as it had tried to meet its obligation following the government's regulation and readiness to help find the solution after PT Freeport Indonesia explained its position in writing.
"What we have most appreciated is their behavior and therefore we will together find the solution. We will give them an opportunity to prove they are serious and if they are indeed unable to meet it, we will find a way out," he said.
Regarding the expiration of the company's concentrate export permit Sudirman said that it was not a problem so long as the company kept meeting its obligation to pay five percent export tax.
"The essence is they must pay the obligation of five percent export tax. Although the permit has already expired they will not automatically stop exports. There is still time for negotiations," he said.
The government had no plan of stopping PT Freeport Indonesia's operations because the task of the government is assuring that economy is running and people get the benefit, Sudirman said.
"We have never thought of stopping their operations. The task of the government is facilitating to assure that the business is running, economy is moving and local people get the benefit," he said.
Regarding the long negotiations between the government and PT Freeport Indonesia on the company's obligation to pay US$530 million, the minister said that it would depend upon the offer and commitment of the US-based mining company.
"It would depend upon their offer. What we want to ensure is that the five percent export tax must be paid. Secondly, it is whether they could show that they are committed to completing the smelter project. That is what we use in negotiations," he said.
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