Jakarta (ANTARA) - Energy and Mineral Resources Minister Bahlil Lahadalia stated that the Indonesian government may increase its stake in PT Freeport Indonesia beyond 61 percent, as negotiations suggest it could acquire more than the earlier 10 percent target.

Since 2018, the Indonesian government has held a 51.23 percent stake in PT Freeport Indonesia and is now looking to increase its ownership further. Meanwhile, Freeport-McMoRan Copper & Gold Inc. holds the remaining 48.77 percent.

"I was summoned by the president to be enquired about the Freeport deal, and we had agreed to acquire another 10 percent of its ownership. However, ongoing negotiations indicated that we, God willing, could acquire more than that," Lahadalia stated after meeting President Prabowo Subianto at the Presidential Palace Complex on Monday.

According to the minister, negotiations for the stake acquisition, as well as the extension of Freeport's mining operation contracts, are ongoing. "Hence, the final acquisition percentage will be announced once it is signed," he added.

The minister assured that the next acquisition of PT Freeport Indonesia’s ownership, whether for 10 percent or more, will be more cost-effective, as their "asset's book value is relatively low."

Meanwhile, Lahadalia said that President Prabowo instructed him to expedite ongoing communication and negotiations with the Freeport management to finalize the deal.

He also said that further acquisition of PT Freeport Indonesia will be strategic in Indonesia's efforts to strengthen state control over natural resources.

The Indonesian government plans to extend PT Freeport Indonesia's mining operation permit until 2061, an extension of 20 years from the current permit, which allows for their operation until 2041.

This step is taken as the company’s mineral reserve and production capacity are projected to peak in 2035. Moreover, the current mining operation conducted by Freeport Indonesia is wholly underground.

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