Rosan: Freeport to Invest US$20 Billion for IUPK Extension

Jakarta (ANTARA) — Investment and Downstreaming Minister/BKPM Head Rosan Roeslani announced that the Indonesian Government and Freeport-McMoRan (FCX), the US-based mining company, have signed a Memorandum of Understanding (MoU) on the extension of the Special Mining Business Licence (IUPK) at Grasberg, Central Papua.

The extension covers the period from 2041 to 2061. Rosan said the investment value under the extension amounts to US$20 billion over the next 20 years.

“In this matter, we are acting on the mandate given to us so that Freeport can increase its investment over roughly the next 20 years to the value of US$20 billion. This will also deliver positive impacts, both in terms of tax revenue and other areas,” Rosan said at a virtual press conference from Washington DC on Friday.

He added that the agreement would be followed up promptly so it can be finalised into a definitive agreement in the near future.

Meanwhile, Coordinating Minister for Economic Affairs Airlangga Hartarto stated that the MoU is part of an Indonesia–US accord to deepen cooperation on critical mineral access.

“In addition, there is also the development of critical minerals — in this case, the extension of the Freeport-McMoRan contract from 2041 to 2061,” he said.

In a fact sheet released by the White House, the agreement is projected to generate annual revenue of US$10 billion and strengthen the US critical minerals supply chain.

The licence extension forms part of the broader tariff negotiation dynamics between Indonesia and the United States. As part of the package, Indonesia has agreed to commit to purchasing US energy commodities worth approximately US$15 billion, procuring Boeing commercial aircraft worth approximately US$13.5 billion, and buying US agricultural products worth more than US$4.5 billion.