Additional 12 Percent Freeport Share Divestment Still Under Government Review
The process of divesting an additional 12 percent stake in PT Freeport Indonesia (PTFI) as part of the requirements for extending its Special Mining Business Permit (IUPK) until 2061 is still ongoing at the government level. The company has submitted a draft agreement to the government for further discussion.
PT Freeport Indonesia President Director Tony Wenas stated that the additional divestment is part of the commitments agreed upon in the IUPK extension scheme. “The 12 percent divestment must indeed be carried out. When the IUPK was issued, one of the requirements was a share transfer agreement that would take effect in 2041,” Tony said.
According to him, the process of drafting the agreement is still underway. Freeport has submitted the draft to the government and is currently awaiting further deliberation. “We have submitted the draft to the government and it is still in the discussion process,” he added.
The plan for the additional Freeport share divestment is a key element in the negotiations for extending the company’s operating permit in Indonesia. The government had previously targeted an additional minimum ownership of 10 percent in accordance with Government Regulation Number 25 of 2024. However, Indonesia ultimately secured a divestment commitment of 12 percent.
The agreement emerged following a series of discussions between the Indonesian government and Freeport-McMoRan in the United States. Danantara Chief Executive Officer Rosan Roeslani previously conveyed that Freeport agreed to release an additional 12 percent stake to Indonesia as part of the company’s operating permit extension deal.
With this additional divestment, Indonesia’s ownership in PT Freeport Indonesia is projected to increase from 51 percent to 63 percent by 2041. A portion of the divested shares is also planned to be allocated to regional government-owned enterprises in Papua.
The government considers the certainty of the permit extension and the completion of the divestment to be important for supporting the sustainability of investment and exploration of Freeport’s underground mine, which requires long-term development.