Freeport Extends Indonesia Contract to 2061 with $20 Billion Investment

TEMPO.CO, Jakarta - Indonesia’s Coordinating Minister for Economic Affairs, Airlangga Hartarto, announced that the government has agreed with US mining giant Freeport-McMoRan to extend the Special Mining Business Licence (IUPK) for the Grasberg mine in Central Papua.

“This concerns the development of critical minerals, specifically the extension of Freeport-McMoRan’s contract from 2041 to 2061,” Airlangga said during a virtual press conference on Friday, February 20, 2026.

The announcement followed the signing of a reciprocal trade agreement between Indonesia and the United States in Washington, D.C., earlier the same day.

The contract extension was formalised through a memorandum of understanding (MoU) signed on Thursday, February 19, 2026, according to Rosan Roeslani, Minister of Downstream and Investment and Head of Indonesia’s Investment Coordinating Board (BKPM).

Rosan said the 20-year contract extension carries an investment value of approximately US$20 billion (Rp337 trillion) and is expected to boost tax revenues and broader economic benefits. “This will certainly be followed up to become a definitive agreement in the near future,” he added.

The reciprocal trade agreement signing was broadcast live on the official YouTube channel of the Coordinating Ministry for Economic Affairs. During the ceremony, Airlangga Hartarto and US Trade Representative Jamieson Greer signed the agreement.

While Indonesian President Prabowo Subianto and US President Donald Trump were not visible during the live broadcast, Airlangga confirmed afterward that both leaders had signed the document titled “Implementation of the Agreement Toward a New Golden Age US-Indonesia Alliance.”