Bahlil Lahadalia, Minister of Investment/Head of the Investment Coordinating Board (BKPM) urges PT Freeport Indonesia (PTFI) to build a metal mineral refining and processing plant or concentrate smelter in Papua.
Constructing a smelter is one of the requirements for PTFI to be able to extend its the Special Mining Business Permit (IUPK).
Another requirement is to divest another 10% of PTFI's shares to a state-owned company through the state-owned mining holding, MIND ID.
"We ask that there should be one smelter in Papua. Why? That concerns the sovereignty and pride of the Papuan people too, don't trick us," said Lahadalia, on July 1, 2023.
However, Minister Lahadalia has not been able to confirm the location for the smelter construction in Papua.
He announced several possible candidate areas for the construction of refining and processing plants, such as in Fakfak, West Papua or Timika, Central Papua, and will be determined through a feasibility study.
By extending PTFI's IUPK until after 2041, the government will receive an additional 10% shares in the company. Currently, MIND ID owns 51%, of PTFI's shares, which will increase to 61% if another 10% of the share can be transferred successfully.
The addition of these shares is aimed at gold and copper exploration in Indonesia reaching 100% in 2052, with plans for an extension of the IUPK still being discussed.
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