REPUBLIKA.CO.ID, JAKARTA, — The Indonesian government has the potential to increase its ownership in PT Freeport Indonesia to exceed 61 percent, following ongoing negotiations that indicated the purchase was more than the initial target of 10 percent. Currently, the government has controlled 51.23 percent of the shares since 2018, while Freeport-McMoRan Copper & Gold Inc. holds the remaining 48.77 percent.

After meeting with President Prabowo Subianto at the Presidential Palace Complex, Energy and Mineral Resources Minister Bahlil Lahadalia stated that the initial agreement was to acquire an additional 10 percent stake. However, he added, “The ongoing negotiations allow us, God willing, to gain more than that."

The negotiations concern not only the acquisition of shares, but also the extension of the Freeport mine operating contract that is currently underway. “The final percentage of the acquisition will be announced after the signing,” Lahadalia added.

The minister assured that subsequent acquisitions would be more cost-effective because “the book value of their assets is relatively low.” President Prabowo also instructed him to speed up communication and negotiations with Freeport management in order to finalize this deal.

Furthermore, Lahadalia stressed that the further acquisition of PT Freeport Indonesia is a strategic step in Indonesia's efforts to strengthen the country's control over its natural resources. The government plans to extend Indonesia's Freeport mine operation permit until 2061, adding 20 years from the current valid permit that expires in 2041.

The move was taken as the company's mineral reserves and production capacity are projected to peak in 2035. In addition, the mine operations currently carried out by Freeport Indonesia are entirely underground.

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