Freeport receives positive sign from RI's President to continue opearations

Jakarta, July 2 (Antara) - President Joko Widodo has given positive indications with regard to the continuation of investments from PT Freeport Indonesia, whose contract expires in 2021, in Papua. "It is clear that the government is willing to allow Freeport continue its operations in Timika, with an emphasis on the development of Papua and Indonesia's economy in general," Minister of Energy and Mineral Resources Sudirman Said stated at a press conference here on Thursday. The minister added that he is still seeking a legal way out to prevent any violation of Government Regulation Number 77 of 2014. Freeport's work contract ends in 2021, but the Indonesian government has proposed changing the scheme from a work contract to a special mining business permit, through which cooperation can be extended by up to 20 years. According to the current regulation, a contract can be extended only two years before it is set to end. In this case, a request for an extension can be made only in 2019. "So we are now looking for a legal solution to avoid violating Government Regulation Number 77 of 2014," Said explained. On the occasion, President Director of Freeport Indonesia Maroef Sjamsoeddin said that the positive signal from President Jokowi had provided certainty for the company's investment plan in Indonesia. He hopes it is effective for prospective investors in the country, as well. In the last five decades of operations in Indonesia, Freeport has always been committed to abiding by the country's laws, Sjamsoeddin remarked. "The company's investment will continue to benefit and provide added value sustainably to the state, the people of Papua, all employees, and shareholders. We will invest some US$15 billion dollars till 2041," he affirmed. In his directives, President Jokowi had earlier noted that Freeport's operations in Papua would be the chief pillar for the acceleration of development in the province. The company has also been requested to boost domestic capacity in its use of local goods, services, and manpower. It was also requested to conduct downstream industrialization through the development of a smelter through an expansion scheme in East Java, for example, or by building a new one in Papua. Freeport Indonesia has also been asked to build a hydropower plant in Urumka in Mimika, which would be useful for people in the region.