By Alif Ilham Fajriadi
Copyright tempo
TEMPO.CO, Jakarta – The Indonesian government has successfully reached an agreement with Freeport-McMoRan Copper & Gold Inc. (FCX), the parent company of PT Freeport Indonesia.Minister of Investment and Industrial Estates, as well as Head of the Investment Coordinating Board (BKPM), Rosan Roeslani, announced that Freeport has consented to divest a 12 percent share of its stock to Indonesia. As a provision of this negotiation, the company has also committed to financing the construction of two schools and a hospital in Papua.Rosan detailed the protracted process behind the agreement. He mentioned that the Indonesian government delegation undertook multiple visits to Freeport’s headquarters and engaged directly with the company’s chief executive, Kathleen L. Quirk.”We negotiated quite intensively. Finally, they agreed to release 12 percent of the shares, free of charge. So, we don’t pay,” Rosan confirmed when addressing the media at the BKPM Office in Jakarta on Wednesday, October 1, 2025.He further emphasized that both parties have reached an understanding, and the government is now finalizing the administrative process and negotiation points before the official signing. “Once that is done, we can proceed with the signing [of the definitive agreement],” Rosan stated.The Chief Executive Officer of Danantara Indonesia also conveyed President Prabowo Subianto’s directive regarding this negotiation outcome. He revealed that Prabowo requested that Freeport establish educational institutions focused on medicine and STEM (Science, Technology, Engineering, and Mathematics). “Both institutions will be built in Papua,” Rosan affirmed.This deal is an extension of the mining operation contract. Prior to this agreement, Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, had hinted that the final share release would exceed the initial target of 10 percent. “What is clear, at the beginning of the negotiation, we did 10 percent. But there is potential for more than 10 percent,” Bahlil said on September 17, 2025.Indonesia already holds a majority stake in PT Freeport Indonesia (51.23 percent) through MIND ID. The remaining 48.77 percent is currently controlled by the U.S.-based FCX. Bahlil emphasized that the valuation for the additional shares was relatively inexpensive because the book value of Freeport’s assets is already very low.Editor’s Choice: Antam Commits to Buying Freeport Gold to Curb ImportsClick here to get the latest news updates from Tempo on Google News
