Jakarta, IDN Times – Indonesia has secured a significant win in its strategic resource management, with Freeport-McMoRan agreeing to divest an additional 12 percent of its shares to the country entirely free of charge. This landmark announcement was made by Rosan Roeslani, CEO of Danantara Indonesia (Indonesia Nusantara Anagata Power Investment Management Agency), at the Ministry of Investment and Downstreaming/BKPM Jakarta, as quoted by ANTARA on Tuesday, September 30, 2025.
Rosan revealed that this pivotal agreement was reached during his direct meeting with Freeport-McMoRan Chairman Richard Adkerson and CEO Kathleen Quirk during a recent visit to the United States. He emphasized, “They have agreed to 12 percent (to divest shares for Indonesia),” underscoring the successful negotiations that culminated in this advantageous outcome for Indonesia.
Initially, Indonesia had targeted Freeport to agree to a 10 percent share divestment. However, through persistent and strategic negotiations, the Indonesian team successfully increased this figure to 12 percent, all without any acquisition cost. “They have agreed to provide 12 percent shares, free of charge,” Rosan reiterated, highlighting the substantial financial benefit and strengthened ownership for the nation.
Beyond the enhanced ownership, Freeport has also committed to significant social responsibility initiatives in Papua, near its operational areas. Rosan confirmed that the company will build two universities and two hospitals in the region. This crucial development aims to bolster the local healthcare infrastructure and enhance the role of medical professionals in Papua. “Later, two hospitals and two universities will be built there, in Papua,” Rosan stated, signaling a long-term commitment to community development.
This strategic share divestment will remarkably elevate the Indonesian government’s stake in PT Freeport Indonesia (PTFI) from 51 percent to an impressive 63 percent. Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia further disclosed that the benefits from this divestment will also be allocated to Papua’s regional-owned enterprises (BUMD), commencing in 2041. This move is a fundamental requirement for Freeport to secure an extension of its Special Mining Business Permit (IUPK) for Production Operations in Papua, which is currently slated to expire in 2041.
The extension of an IUPK for Production Operations is governed by specific criteria outlined in Article 195B Paragraph (1) of Government Regulation (PP) Number 25 of 2024 concerning the Implementation of Mineral and Coal Mining Business Activities. Among these key criteria is the establishment of a new, non-dilutable share purchase agreement, ensuring a minimum of 10 percent of the total share ownership is transferred to state-owned enterprises (BUMN).
Summary
Indonesia has secured an additional 12 percent share divestment from Freeport-McMoRan, entirely free of charge, as announced by Danantara Indonesia CEO Rosan Roeslani. This agreement increases the Indonesian government’s stake in PT Freeport Indonesia from 51 percent to 63 percent, exceeding the initial 10 percent target. This significant divestment is a crucial requirement for Freeport to secure an extension of its Special Mining Business Permit (IUPK) in Papua beyond 2041.
In addition to the enhanced ownership, Freeport has committed to building two universities and two hospitals in Papua as part of its social responsibility initiatives. Benefits from this divestment will also be allocated to Papua’s regional-owned enterprises starting in 2041. These actions underscore a commitment to community development and local economic participation in the region.