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Jokowi Wants a Win-Win Solution over Freeport Dispute

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23 February 2017 13:24 WIB

President Joko Widodo (Jokowi), give speech during Financial Close, Project Finance Investment Non Government Budget (PINA) in Jakarta, Feb. 17, 2017. TEMPO/Subekti.

TEMPO.CO, Jakarta - President Joko Widodo said that he wants a win-win solution over PT Freeport Indonesia’s refusal to switch over its Contract of Work (CoW) to a special mining permit (IUPK).

“We want it [a win-win solution],” President Joko Widodo said today in Jakarta. The seventh Indonesian president elaborated that his ministers will negotiate the business deals.

Earlier, PT Freeport Indonesia (PTFI) said it would abide by a government regulation on the requirement to switch over from CoW to a special mining permit. PTFI, however, had asked for the government to ensure investment stability with an equal fiscal guarantee as currently set in the CoW.

Moreover, U.S.-based Freeport-McMoRan CEO Richard Adkerson has set a 120-day deadline for Indonesia to settle the dispute between the Joko Widodo administration and its local unit PT Freeport Indonesia. The deadline has been effective after a meeting between the two parties on Monday, February 13, 2017.

Adkerson added that the mining company will take Indonesia dispute to international arbitration if both parties fail to come to terms.

President Jokowi will take a stance if both parties fail to reach an agreement. But a win-win solution will be sought first and foremost. “If deliberations are difficult… I will take a stance. For now, let the ministers [handle it],” Jokowi said.

ADITYA BUDIMAN



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