JAKARTA -- Minister of State-Owned Enterprises (BUMN) Erick Thohir explained that the Indonesian Government had approved the extension of the Special Mining Business Permit (IUPK) for PT Freeport Indonesia (PTFI) for 20 years until 2061. In fact, the Freeport permit will only expire in 2041.

Erick said the government did not make this agreement in a hurry. "In the mining business you have to invest at the start, the contract cannot expire before you invest," said Erick in Jakarta, Tuesday (19/12/2023).

According to Erick, currently PTFI's mineral reserves are still relatively large. So, the government agreed to extend PTFI's business permit.

PTFI has also spoken with several ministries regarding the IUPK extension. "If the Ministry of BUMN is a shareholder, especially if it is already 51 percent, then we support it," said Erick Thohir.

Previously it was reported that PT Freeport Indonesia's IUPK extension was motivated by the company's commitment to build a new smelter in Papua. The government allows the builder on condition that the total shares or income to the Indonesian government must be increased.

Law Number 3 of 2020 concerning Amendments to Law Number 4 of 2009 concerning Mineral and Coal Mining Article 196 allows mining companies that are still operating to extend permits if there are still gold or copper reserves.