KATADATA ? PT Freeport Indonesia has not applied for Special Mining Business Permit (IUPK) to the government although the company has agreed to amend its cooperation scheme with the government from contract of work to the IUPK.
Director General of Mineral and Coal of Ministry of Energy and Mineral Resources (EMR) Bambang Gatot Ariyono said that the amendment to the cooperation scheme between Freeport and the Indonesian government is currently being discussed and the company has not applied for the new permit.
According to him, so far Freeport has principally approved the amendment to the cooperation scheme. The company is still assessing the consequences of the change in status, rights and obligations on its operations in Indonesia.
"They?re (Freeport) still assessing their new obligations. They will definitely review them and will not immediately accept them," he said Thursday (6/25) at the Ministry of EMR office in Jakarta.
Freeport?s Contract of Work will expire in 2021. The government has offered to extend the company?s operations until 2035 if it is willing to amend the CoW into IUPK this year.
Based on the Mineral and Coal Law, all CoWs will be replaced with mining business permit. The government has offered to speed up the amendment to the cooperation scheme before the contract expires.
The company?s approval of the amendment to the cooperation scheme is a solution to speed up the issuance of decision on the continuity of its business operations in Indonesia. The government and Freeport are currently renegotiating the CoW.
Gatot also said that the government is still waiting for a decision from the company on share divestment. ?We?re still waiting for their offer. They?re still reviewing the price," he said.
Government Regulation No. 77 of 2014 requires Freeport to divest 10.64 percent of its shares. Freeport will divest its shares in October 2015 which will increase the government?s stake in the company to 20 percent. Indonesian government currently owns 9.36 percent of Freeport?s shares.
Dapatkan pengalaman membaca lebih nyaman dan nikmati fitur menarik lainnya lewat aplikasi mobile Katadata.
