Freeport Investment Extended for 20 Years, Valued at US$20 Billion

The Indonesian government and Freeport-McMoRan (FCX) have signed a Memorandum of Understanding (MoU) concerning the extension of the Special Mining Business Licence (IUPK) at Grasberg, Central Papua.

The extension with the US-based mining company covers the period 2041–2061.

The announcement was made by Minister of Investment and Downstreaming/Head of the Investment Coordinating Board (BKPM), Rosan Roeslani, during a virtual press conference in Washington D.C. on Friday (20 February).

Rosan stated that the investment value under the extension amounts to US$20 billion over the next 20 years.

“In this regard, we are acting on the mandate given to us so that Freeport can increase its investment over approximately the next 20 years to a value of US$20 billion. This will also deliver positive impacts, both in terms of tax revenue and other benefits,” he said.

He added that the agreement would be promptly followed up to be finalised into a definitive agreement in the near future.

Meanwhile, Coordinating Minister for Economic Affairs Airlangga Hartarto stated that the MoU forms part of a broader Indonesia-US agreement to deepen cooperation on critical mineral access.

“In addition, there is also the development of critical minerals, in this case the extension of the Freeport-McMoRan contract from 2041 to 2061,” he said.

According to a fact sheet released by the White House, the agreement is projected to generate annual revenue of US$10 billion and strengthen the US critical mineral supply chain.

The licence extension forms part of the ongoing tariff negotiation dynamics between Indonesia and the United States.

Under the broader arrangement, Indonesia has agreed to commit to purchasing US energy commodities worth approximately US$15 billion, procuring Boeing commercial aircraft valued at approximately US$13.5 billion, and purchasing US agricultural products worth more than US$4.5 billion.