Freeport to Add Rp337.6 Trillion in Investment over 20-Year Period
Investment and Hilirisasi Minister and Head of the Investment Coordinating Board (BKPM) Rosan Roeslani has revealed that Freeport plans to increase its investment over the coming two decades. This is linked to critical minerals management as part of a newly signed agreement.
“Yesterday, a memorandum of understanding between Freeport and the Indonesian government was also signed, with us representing the government under the mandate given to us,” Rosan said during an online press conference on Friday (20 February 2026).
The agreement refers to a Memorandum of Agreement on Critical Minerals, signed by Investment and Hilirisasi Minister and BKPM Head Rosan Perkasa Roeslani, Freeport-McMoRan President and CEO Kathleen Quirk, and PT Freeport Indonesia President Director Tony Wenas. It forms part of 11 MoUs that were signed.
Rosan explained that through this MoU, Freeport could add investment of USD 20 billion, equivalent to Rp337.6 trillion at an exchange rate of Rp16,884, over the next twenty years.
“Freeport can increase its investment over roughly the next 20 years to a value of 20 billion dollars, and this will also have a positive impact in terms of tax revenue and other areas,” he explained. “Therefore, this will naturally be followed up so that it becomes a definitive agreement in the near future,” Rosan added.
Reciprocal Tariff of 19 Per Cent with the United States
Indonesia has officially agreed a trade deal with the United States establishing a reciprocal tariff of 19 per cent. The agreement covers 1,819 tariff lines for both countries. The Agreement on Reciprocal Trade (ART) was signed by President Prabowo Subianto and US President Donald Trump. The deal was reached following the inaugural meeting of the Board of Peace for Gaza.
“Indonesia and the United States have agreed to strengthen economic cooperation,” said Coordinating Minister for Economic Affairs Airlangga Hartarto during an online press conference held on Friday (20 February 2026).
He recounted the negotiation process that began in April 2025, when Donald Trump announced that Indonesia would face a reciprocal tariff of 32 per cent. Negotiations ultimately resulted in a reduction to 19 per cent, accompanied by various additional provisions.
“Ninety per cent of the documentation submitted by Indonesia was accepted by the United States. So Indonesia’s proposals were accepted by the US, as set out in the Agreement on Reciprocal Tariff,” he said. As a result of these negotiations, both heads of state signed the ART covering 1,819 tariff lines. Several commodities even received tariff exemptions.
“This ART contains 1,819 tariff lines for Indonesian products, from both the agricultural and industrial sectors,” Coordinating Minister Airlangga added.
Indonesian Palm Oil Exempt from US Import Tariffs
A number of agricultural and manufactured products from Indonesia will be exempt from import duties in the United States. Among these are palm oil, cocoa, as well as textiles and garments originating from Indonesia.
Coordinating Minister for Economic Affairs Airlangga Hartarto explained that this information is set out in the Agreement on Reciprocal Trade signed by President Prabowo Subianto and US President Donald Trump. Under this policy, there are a total of 1,819 regulated tariff lines, with palm oil, coffee, and cocoa among the products exempted from tariffs.
“Palm oil, coffee, cocoa, spices, rubber, electronic components including semiconductors, and aircraft components all carry a tariff of zero per cent,” Airlangga said during the online press conference on Friday (20 February 2026).
This policy is expected to enhance the competitiveness of Indonesian products in international markets, particularly in the US. The policy also reflects the government’s efforts to expand market access for Indonesia’s flagship products, with the aim of delivering a positive impact on the national economy.