Freeport Extends Investment in Indonesia for 20 Years Worth Rp337.6 Trillion
Investment and Downstreaming Minister/BKPM Head Rosan Roeslani has revealed that the Indonesian Government and US mining company Freeport-McMoRan (FCX) have signed a Memorandum of Understanding (MoU) concerning the extension of the Special Mining Business Permit (IUPK) at Grasberg, Central Papua.
The permit extension is valid for 20 years, covering the period from 2041 to 2061. Rosan stated that the investment value under this extension amounts to US$20 billion, equivalent to Rp337.6 trillion, over the next 20 years.
“In this matter, we are acting on the mandate given to us so that Freeport can increase its investment over approximately the next 20 years to the value of US$20 billion. This will also deliver positive impacts, both in terms of tax revenue and other benefits,” Rosan said during a virtual press conference in Washington DC, United States, on Friday, 20 February 2026.
He added that the agreement would be promptly followed up so that it can be finalised into a definitive agreement in the near future.
Meanwhile, Coordinating Minister for Economic Affairs Airlangga Hartarto said the MoU forms part of an agreement between Indonesia and the United States to deepen cooperation on critical mineral access.
“In addition, there is also the development of critical minerals, in this case the extension of Freeport-McMoRan’s contract from 2041 to 2061,” he said.
According to a fact sheet released by the White House, the agreement is expected to generate annual revenue of approximately US$10 billion and strengthen the United States’ critical mineral supply chain.
The permit extension also forms part of the broader tariff negotiation dynamics between Indonesia and the United States. Under the agreement, Indonesia has committed to purchasing US energy commodities worth approximately US$15 billion, procuring Boeing commercial aircraft worth approximately US$13.5 billion, and buying US agricultural products worth more than US$4.5 billion.