Indonesia-US Trade Deal Outcome: Freeport Mining Licence Extended, Rp 337 Trillion in Additional Investment
The Indonesian government has officially opened a new chapter in critical minerals cooperation with Freeport-McMoRan (FCX). The American mining giant has secured an extension of its Special Mining Business Licence (IUPK) for PT Freeport Indonesia (PTFI).
Minister of Investment and Downstreaming/Head of BKPM Rosan Roeslani said the cooperation forms part of a reciprocal trade agreement between Indonesia and the United States. The extension of Freeport’s mining licence has been set out in a Memorandum of Understanding (MoU) between the Indonesian government, Freeport-McMoRan, and PTFI.
“There is one addition — yesterday an MoU agreement between Freeport and the Indonesian government was also signed, in which we represented the government under the mandate given to us,” Rosan said during an online press conference on Friday (20 February 2026).
The MoU was officially signed by Rosan on behalf of the Indonesian government, Freeport-McMoRan Inc President and CEO Kathleen Quirk, and PT Freeport Indonesia President Director Tony Wenas during the Business Summit at the US Chamber of Commerce in Washington DC on Wednesday (19 February) local time.
With the MoU in place, Rosan said Freeport-McMoRan will also increase its investment in Indonesia. The planned investment is valued at US$20 billion, equivalent to Rp 337.76 trillion (at an exchange rate of Rp 16,888 per US dollar), over the next 20 years.
“Freeport can increase its investment by approximately US$20 billion over the next 20 years, and this will also have a positive impact in terms of tax revenues and other contributions,” he said.
Rosan confirmed that the agreement will be followed up promptly so that it can be finalised into a definitive agreement in the near future. “This will of course be followed up so that it becomes a definitive agreement before long,” Rosan affirmed.
Previously, PT Freeport Indonesia President Director Tony Wenas described the MoU as a strategic step to ensure the continuity of long-term operations and investment by optimising resources identified through detailed exploration to increase reserves and maintain production continuity beyond 2041.
The MoU also ensures an additional 12 per cent government shareholding in PTFI after 2041.
“With this, the continuity of contributions to the nation, particularly the people of Papua, will be maintained through estimated state revenues of approximately US$6 billion or Rp 90 trillion per year, based on current commodity prices,” Tony explained in a written statement on Thursday (19 February 2026).