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Jakarta Post

No backdoor deal in Freeport negotiation, says Sri Mulyani

  • News Desk

    The Jakarta Post

Jakarta   /   Fri, December 28, 2018   /   05:07 pm
No backdoor deal in Freeport negotiation, says Sri Mulyani Finance Minister Sri Mulyani Indrawati (Antara/Agung Rajasa)

Finance Minister Sri Mulyani Indrawati has assured that no backdoor deal was made in the negotiation to close the divestment agreement with Freeport-McMoRan, the US mining giant and parent company of gold and copper miner PT Freeport Indonesia (PTFI).

Sri Mulyani said the entire negotiation process was managed transparently. “All relevant ministers involved in the negotiation supported to each other,” the minister said on Thursday as reported by

All ministers involved in the negotiation had followed President Joko “Jokowi” Widodo's guidance that the sole objective of the deal was to gain as much as possible from PTFI's Grasberg mine in Papua to benefit the people.

No personal interests were involved in the negotiation, she stressed.

Sri Mulyani added that each minister had their own roles in the negotiation, with Energy and Mineral Resources Minister Ignasius Jonan focusing on the change in the type of contract from the Contract of Work (CoW) to the Special Mining Permit (IUPK). Jonan also ensured Freeport’s commitment to develop smelter.

She and State-Owned Enterprises Minister Rini Soemarno focused on the divestment, starting with the establishment of state mining holding company PT Indonesia Asahan Aluminium (Inalum), evaluating the agreement between Freeport and Rio Tinto, and to managing the global bond issuance to finance the deal.

Meanwhile, Forestry and Environment Minister Siti Nurbaya negotiated on environmental issues, particularly with regard to environmentally unfriendly mining practices to ensure the observance of better future practices.