The Jakarta Post
Energy and Mineral Resources Minister Ignasius Jonan has stressed that the government and Freeport Indonesia have resolved their main differences.
Meanwhile, the remaining issues pertain to tax schemes and levies that should be paid by the company to the regional administration, the minister added.
“Negotiations are to be completed this month,” said Jonan after meeting at the Presidential Office in Jakarta on Monday as reported by tribunnews.com.
Under Law No. 4/2019 on diversified mineral resources, mining companies are required to convert their contract of work (CoW) to a special mining license (IUPK), which among others requires them to divest 51 percent of their shares to Indonesian entities and construct a smelter to upgrade the added-value of the mining materials.Read also: Contract to be extended to 2041 as Freeport agrees to divest 51% shares
“Regarding tax scheme, you can ask the finance minister,” said Jonan, adding that control was in the hands of Finance Minister Sri Mulyani Indrawati.
Coordinating Maritime Affairs Minister Luhut Pandjaitan said Freeport Indonesia, a subsidiary of United States mining company Freeport McMoRan, had agreed to divest 51 percent of its shares and to construct the smelter, while the government agreed to extend its contract to 2041. (bbn)