Freeport Mining Permit Extended by 20 Years as Government Secures Rp336 Trillion Investment

JAKARTA — Minister of Investment and Downstreaming/Head of BKPM Rosan Roeslani announced the signing of a memorandum of understanding (MoU) between the Indonesian Government and Freeport-McMoRan regarding the extension of the Special Mining Business Permit (IUPK) for the Grasberg mining area in Central Papua.

Rosan disclosed that the IUPK extension covers the period from 2041 to 2061, spanning 20 years. The agreement lays the groundwork for the continuation of mining operations after the current permit expires in 2041.

“Yesterday, an MoU was signed between Freeport and the Indonesian Government — in this case, we were representing the government under the mandate given to us — so that Freeport can increase its investment over approximately the next 20 years,” he said during a virtual press conference on Friday (20/2/2026).

According to Rosan, the agreed investment value under the extension amounts to USD 20 billion, or approximately Rp336.4 trillion (at an exchange rate of Rp16,820 per USD), for the coming two decades. He assessed that the additional investment has the potential to strengthen state revenues through taxes, royalties, and other downstream economic impacts.

“The value is 20 billion US dollars. And this will also deliver positive impacts, both in terms of tax revenue and other contributions,” he continued.