Minister of Energy and Mineral Resources, Arifin Tasrif, said that PT Freeport Indonesia (PTFI) can secure their permit for coppper concentrate export only after could finalize their smelter construction in May 2024.

"It is granted, as long as, it finalizes the smelter construction in May,” Arifin said on Friday, March 8, 2024.

If Freeport does not complete the construction of the smelter in May 2024, he said, there will be calculation on fine imposed.

PT Freeport Indonesia has applied for a copper concentrate export licence at least until its new smelter in Java Integrated Industrial and Ports Estate (JIIPE), Gresik, East Java, is fully operational by December 2024.

As reported by cnbcindonesia.com, Freeport Indonesia President Director Tony Wenas said the proposed extension of the copper concentrate export licence is related to the operation of the new copper processing and refining facility (smelter) in the Java Integrated Industrial and Ports Estate, Gresik, East Java.

Freeport's new smelter is scheduled to start operating in May 2024, and is scheduled to reach its full capacity in December 2024.

Thus, the copper concentrate that has been produced cannot immediately be fully absorbed by the new smelter.

If concentrate exports are stopped, while domestic smelters have not been able to fully absorb, it is feared that it will create a buildup of stock and could have an impact on reducing the production capacity of concentrates and ores.

"It is hoped that we can continue to export until the smelter is fully operational in December 2024," Tony said last December.

If exports stop, his party is also concerned that this could also have an impact on reduced state revenue.

"State revenue could be reduced by 40 percent," he said, while adding that his party had proposed an extension of the copper concentrate export licence after May 2024.