The Indonesian government is seeking to acquire more than 10 percent of PT Freeport Indonesia (PTFI) shares from U.S.-based Freeport-McMoRan, surpassing the original target tied to the company’s mining license extension beyond 2041.
Energy and Mineral Resources (ESDM) Minister Bahlil Lahadalia revealed that negotiations have progressed beyond the initial agreement for a 10 percent share purchase.
“Initially we agreed on a 10 percent increase, but the talks have now developed, and, God willing, it will be more than that,” Bahlil said after a meeting at the Presidential Palace in Jakarta, on Monday, September 15, 2025.
President Prabowo Subianto has instructed Bahlil to speed up communications and negotiations with PTFI and Freeport-McMoRan. Bahlil emphasized that a larger government stake would strengthen Indonesia’s position when the special mining business license (IUPK) extension is finalized.
The minister added that the government aims to secure the additional shares at a favorable price, citing PTFI’s relatively low asset valuation.
“The book value of their assets is currently very thin. This situation is expected to continue until 2041,” he cited.
Indonesia’s state-owned mining holding company MIND ID currently owns 51 percent of PTFI, while Freeport-McMoRan holds the remaining 49 percent.
According to PTFI President Director Tony Wenas, the planned divestment of an additional 10 percent stake is still in the planning stage. The government’s goal is to raise its ownership to around 61 percent.
“The discussions are still ongoing,” Tony said after a separate meeting at the Presidential Palace on July 30, 2025.
The proposed increase in government ownership is part of the conditions for renewing PTFI’s IUPK for production operations, which is set to expire in 2041.
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