PTFI Processes IUPK Extension and 12 Percent Share Divestment

PT Freeport Indonesia is processing the extension of its special mining business permit (IUPK) after its current validity ends in 2041. The process includes a plan to transfer 12 percent of Freeport-McMoRan shares to the Indonesian government, as reported by Detik Finance.

The share transfer agreement was formalised in a memorandum of understanding between Freeport-McMoRan and the Indonesian government in February 2026. The scheme will gradually alter the foreign shareholding composition in the mining company.

President Director of PT Freeport Indonesia, Tony Wenas, provided clarification on the ownership transfer mechanism while in Tembagapura, Central Papua, on Monday, 17 August 2026.

“There will be another 12 percent divestment signed now to take effect in 2041. There is no sale and purchase involved. No sale and purchase,” said Tony Wenas, President Director of PTFI.

The effective implementation of the share transfer will begin in 2041. FCX’s ownership structure of 48.76 percent will remain in place until 2041, then decrease to approximately 37 percent starting in 2042.

The asset handover mechanism is governed by provisions for pro-rata investment reimbursement by the share recipient based on book value for profitable investment periods after 2041.

“FCX will transfer 12 percent of its shares in PTFI to the government in 2041 at no cost, on the condition that the acquiring party will reimburse the pro-rata costs incurred by FCX using book value for profitable investments in the period after 2041,” stated Freeport’s official release on Thursday (19/2/2026).

The formal application for the extension of the mining operational permit was submitted to the Ministry of Energy and Mineral Resources in mid-June 2026. Technical discussions regarding the details of the permit extension are still ongoing intensively.

The continuity of the operational permit is considered crucial for potential state revenue and the livelihoods of tens of thousands of workers who depend on the mining facilities in Papua.

“The bottom line is that if the mine stops in 2041, no one benefits. The government also loses out, with no more revenue from Freeport. The 30,000 employees would also be gone. Our community development programmes would also cease. So if it is extended, all parties benefit,” said Tony Wenas, President Director of PTFI.