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Freeport agrees to divest 12 percent shares to Indonesia free of charge

  • Published on 02/10/2025 GMT+7

  • Reading time 2 minutes

  • Author: Julian Isaac

  • Editor: Imanuddin Razak

Freeport-McMoRan has agreed to divest 12 percent of its shares in PT Freeport Indonesia to the Indonesian government at no cost, according to Rosan P. Roeslani, CEO of the state-owned investment management agency BPI Danantara.

“They have agreed to 12 percent,” Rosan said after a meeting at the Ministry of Investment and Downstreaming in Jakarta on Tuesday, September 30, 2025.

He added that the decision came after direct talks with Freeport-McMoRan Chairman Richard Adkerson and CEO Kathleen Quirk during his recent visit to the United States.

Initially, Indonesia sought a 10 percent divestment. However, through negotiations, the government secured 12 percent, with Freeport agreeing to transfer the shares free of charge.

In addition to the divestment, Rosan revealed that Freeport is also committed to building two universities and two hospitals near its operations in Papua, aimed at strengthening healthcare and education in the region.

The divestment forms part of the requirements for Freeport to extend its Special Mining Business License (IUPK) for production operations, which is set to expire in 2041. Under Government Regulation No. 25/2024 on the Implementation of Mineral and Coal Mining Business Activities, such license extensions can be granted if companies divest at least 10 percent of shares to Indonesian state-owned enterprises (SOEs) under a non-dilutable agreement.

Energy and Mineral Resources (ESDM) Minister Bahlil Lahadalia confirmed that the divested shares would also be allocated to regional government-owned enterprises (ROEs) in Papua. This arrangement will increase the government’s stake in PT Freeport Indonesia from 51 percent to 63 percent by 2041.

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Corporate Divestment Mining Primary

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