TEMPO.CO, Jakarta - Coordinating Minister Maritime Affairs Luhut Binsar Panjaitan wants all matters and discussions regarding Freeport to be completed by 2021. This includes divestment, smelter development, and tax schemes.
"Negotiations are still under way. What the Minister of Energy and Mineral Resources Ignasius Jonan said is right; Freeport must divest its shares," Luhut said at the Presidential Palace complex on Wednesday, August 23.
Read: BPJS Offered Freeport Divestment
Freeport is working to change its license CoW to IUPK (Special Mining Permit) in compliance of Government Regulation No.1/2017 on Coal and Mineral. Among the requirements to obtain an IUPK are divesting 51 percent of the company's share and building a smelter.
Freeport has not fully agreed with the rules and ask for "waivers", including divesting less than 51 percent and asking for fixed-rate tax scheme.
Luhut asserted that the government still wants a 51-percent divestment and a smelter commitment. The government may also approve Freeport's request of a nail-down tax policy.
Energy Minister Ignatius Jonan had said that Freeport had agreed to the divestment rules after meeting with Freeport CEO Richard Adkerson. However, the issue becomes uncertain again following Freeport spokesman's Riza Pratama denial.
"I didn’t meet Riza. I met Richard Adkerson. I don’t think it's necessary for someone who's a junior [to Anderson]. You can write that," Jonan had responded.
Separately, Ignatius Jonan said that discussions with Freeport will be held again by the end of this month.
ISTMAN MP
