United States and Indonesia Sign MoUs Worth US$38.4 Billion; Freeport Granted Mining Permit Extension to 2061
JAKARTA — President Prabowo Subianto witnessed the signing of 11 memoranda of understanding (MoUs) worth US$38.4 billion between Indonesian and American businesses during a roundtable Business Summit session organised by the US-ASEAN Business Council (US-ABC).
The event took place at the U.S. Chamber of Commerce building in Washington DC on Wednesday, 18 February 2026.
Among the 11 MoUs signed was a Memorandum of Agreement on Critical Minerals, executed by Investment and Downstream Industries Minister/BKPM Head Rosan Perkasa Roeslani, Freeport-McMoRan President and CEO Kathleen Quirk, and PT Freeport Indonesia President Director Tony Wenas.
The Indonesian government extended PT Freeport Indonesia’s (PTFI) Special Mining Business Permit (IUPK) through to 2061.
Investment Minister Rosan Perkasa Roeslani said PT Freeport has committed to investing approximately US$20 billion over the next 20 years. The additional funding is claimed to represent long-term strengthening of the national mining sector, particularly in critical mineral development and downstream processing.
Roeslani disclosed that the commitment has been formalised in a memorandum of understanding between the Indonesian government and Freeport.
“An MoU agreement between Freeport and the Indonesian government has been signed. Freeport can increase its investment by approximately US$20 billion over the next 20 years,” Rosan said during a virtual press conference on Friday, 20 February 2026.
Rosan emphasised that the MoU would not remain merely a commitment on paper. The government will follow through to ensure it is converted into a definitive and binding agreement between both parties.
Freeport’s investment forms part of the 11 memoranda of understanding worth US$38.4 billion, or approximately Rp650.07 trillion, between Indonesian and American businesses.
Previously, on Wednesday 18 February 2026, the Indonesian government officially extended PT Freeport Indonesia’s Special Mining Business Permit beyond 2041.
This strategic agreement was marked by the signing of a Memorandum of Understanding between the Indonesian government and Freeport-McMoRan in Washington, United States.
PTFI President Director Tony Wenas said the permit extension provides long-term investment certainty with a projected substantial contribution to state coffers. Through continued operations, state revenues are estimated to reach Rp90 trillion, or the equivalent of US$6 billion, annually.
“This step ensures the continuity of PTFI’s operations whilst optimising natural resources for the prosperity of the people in accordance with the mandate of the 1945 Constitution,” Tony said in an official statement.
Beyond contributions to the central government, the extension guarantees the continuation of 30,000 jobs. “This includes approximately Rp14 trillion for regional governments, the continuation of around 30,000 jobs, and community development programmes worth approximately Rp2 trillion per year,” he said.
The 11 MoUs signed in the presence of President Prabowo were:
Memorandum of Agreement on Critical Minerals, signed by Investment and Downstream Industries Minister/BKPM Head Rosan Perkasa Roeslani, Freeport-McMoRan President and CEO Kathleen Quirk, and PT Freeport Indonesia President Director Tony Wenas;
MoU on Oilfield Recovery between Pertamina and Halliburton, signed by Pertamina CEO Simon Mantiri and Halliburton President Director Ankush Balla;
MoU on Agriculture (Maize) between PT Cargill Indonesia, PT Arena Agro Andalan and Cargill Inc, signed by Amcham Managing Director representing Fanny Hosea of PT Sorini Agro Asia Corporindo (Cargill Indonesia) Donna Priadi and Director of International Government Relations (China and APAC) at Cargill Elizabeth Struse;
MoU on Cotton between Busana Apparel Group and the U.S. National Cotton Council, signed by Busana Apparel Chief Marketing Officer Manish Virmani and National Cotton Council Senior Government Relations Director Jeff Kuckkuck;
MoU on Cotton between Daehan Global and the U.S. National Cotton Council, signed by Daehan Global CEO Boo Hyung Lee and National Cotton Council Senior Government Relations Director Jeff Kuckkuck;
MoU on Shredded Worn Clothing between the Indonesian Garment and Textile Association, PT Pan Brothers and Ravel, signed by PT Pan Brothers CEO Ludijanto Setijo and Ravel CEO Zahlen Titcomb;
MoU on Furniture between ASMINDO (Indonesian Furniture Industry and Handicraft Association) and Bingaman and Son Lumber Inc, signed by Vivere Group CEO (ASMINDO) Dedy Rochimat and Director of Exports Jeremy Roupp;
MoU on Semiconductors between Galang Bumi Industri and Essence, signed by President Director Ahmad Maaruf Maulana and President Director Chester Coleman;
MoU on Semiconductors between Galang Bumi Industri (GBI) and Tynergy Technology Group, signed by GBI Director Kadafi Yahya Muhamad and President Director Yan Purba;
Transnational Free Trade Zone Friendship between Galang Bumi Industri and Solanna Group LLC, signed by Director Tjaw Hioeng and Solanna Group President David Fordon;
MoU on Furniture/Wood Products between HIMKI (Indonesian Furniture and Handicraft Industry Association) and the American Hardwood Export Council, signed by Head of Promotion and Marketing for the Americas Rudy Hartono and American Hardwood Export Council representative Michael Snow.
This momentum demonstrates the high level of confidence the international business community has in Indonesia’s economic prospects. Furthermore, the agreements reinforce Indonesia’s position as a strategic partner in the Indo-Pacific region.
The government continues to oversee the realisation of every cooperation commitment that has been agreed upon to ensure tangible impact on the national economy. Through these agreements, the government is ensuring that the international collaborations forged are capable of driving sustainable economic growth.