Indonesian Political, Business & Finance News

Indonesian Ambassador Pushes for Technology Transfer and Workforce Development in Freeport Partnership

| Source: ANTARA_ID Translated from Indonesian | Mining
Indonesian Ambassador Pushes for Technology Transfer and Workforce Development in Freeport Partnership
Image: ANTARA_ID

Indonesian Ambassador to the United States Indroyono Soesilo emphasised that the strategic value of Indonesia’s partnership with US mining company Freeport-McMoRan lies not only in increased shareholding but also in technology transfer and human resource development to support national mining industry self-sufficiency. Ambassador Soesilo conveyed this message during a meeting with Freeport-McMoRan CEO Kathleen Quirk at the company’s headquarters in Phoenix, Arizona. He assessed that the long-term relationship between Indonesia and Freeport is evolving towards greater equality. ‘The most crucial aspect is not just increased Indonesian shareholding, but how Papua and Indonesia can acquire technological capabilities, skilled workforce, and the opportunity to independently manage modern mining operations in the future,’ Ambassador Soesilo stated in a statement from the Indonesian Embassy in Washington received in Jakarta on Monday. One key issue discussed was strengthening AI-based mining technology transfer being developed by Freeport. The technology, named TROI (Throughput, Recovery, Optimization, Intelligence), processes data from thousands of operational mine and processing facility sensors in real time. According to the Indonesian Embassy in Washington, the system analyses the relationship between ore characteristics, plant sensor data, grinding rates, and copper recovery levels. Within seconds, data is sent to processing centres to generate operational adjustments aimed at optimising production. TROI can also identify the type of ore being processed and provide factory control adjustment recommendations every one to three hours. The technology has been implemented at Freeport’s copper mines in the US and is reported to have increased copper production by up to five per cent without requiring significant capital investment. The embassy stated that a similar technology is planned for implementation in Papua. The AI system is expected to facilitate more substantial technology transfer and foster the emergence of Papua-born data scientists, metallurgists, and mining engineers capable of independently managing modern mining operations. In addition to technology transfer, Freeport is offering internship opportunities for Indonesian graduates from US universities. The programme aims to strengthen knowledge transfer and provide younger Indonesians with access to the latest mining technologies. On ownership, Indonesia will further strengthen its position in PT Freeport Indonesia. From 2041, Indonesia’s shareholding will rise from 51.23% to 63% as part of an operational permit extension agreement until 2061 reached between the Indonesian government and Freeport-McMoRan in February 2026. The agreement continues a major transformation that began with the historic 2018 divestment, when Indonesia’s stake through MIND ID rose from 9.36% to a majority shareholder. These changes are also reflected in the workforce and leadership composition. Of approximately 27,000 workers at PT Freeport Indonesia, over 40% are indigenous Papuans, while 97% are Indonesian citizens. Indonesian professionals now dominate strategic company positions, including nine board seats and over 100 managerial roles. PT Freeport Indonesia is currently led by President Director Tony Wenas.

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