JAKARTA – The Ministry of Energy and Mineral Resources (ESDM) has confirmed that negotiations regarding the divestment of an additional 12% stake in PT Freeport Indonesia (PTFI) to the Indonesian government have been finalized and agreed upon.
Minister of ESDM Bahlil Lahadalia announced that these long-standing negotiations have concluded successfully, paving the way for Freeport to receive an extension of its special mining business license (IUPK) beyond 2041.
“I have declared that the additional Freeport negotiation is final, with an increase of 12%,” Bahlil told reporters in Jakarta on Tuesday, October 7, 2025.
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While Bahlil could not specify the exact timeline for the divestment process, he assured that Freeport’s IUPK extension is secured.
“That will happen during the extension. We’ll see. The current mine is valid until 2041. The exact date is still being discussed,” he explained.
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Previously, Bahlil stated that a portion of the additional shares in Freeport would be allocated to Papua’s Regional-Owned Enterprises (BUMD). He emphasized that this share distribution would occur after 2041. This additional share divestment serves as a prerequisite for Freeport to obtain the IUPK extension beyond 2041.
He further clarified that the option to extend Freeport’s mining permit aligns with President Prabowo Subianto’s directives, which were communicated during meetings with Freeport-McMoRan and PTFI.
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“If the [IUPK] is not extended, Freeport’s peak production will be in 2035. After 2035, it will decline, impacting the company’s productivity, state revenue, employment, and the regional economy,” he explained.