The regulations must be completed first then the negotiation can be finalized. We try to finish it as soon as possible, June at the latest.
Jakarta (ANTARA) - President Joko Widodo (Jokowi) is aiming to complete negotiations on increasing the government's stake in PT Freeport Indonesia to 61 percent by June 2024.

"The regulations must be completed first then the negotiation can be finalized. We try to finish it as soon as possible, June at the latest," he informed in Jakarta on Thursday.

The President said he believes that the 61-percent share ownership can be realized after a consensus is reached in negotiations with PT Freeport Indonesia.

In addition, the Indonesian government is finalizing the revised Government Regulation (PP) Number 96 of 2021 concerning the Implementation of Mineral and Coal Mining Business Activities.

"We are still in the process of negotiating and also preparing the regulations. But I am sure we can get that figure (61 percent)," he affirmed.

However, he admitted that negotiations with PT Freeport Indonesia have been tough.

"Yes, the negotiations were very tough. That is why it is called a negotiation," he remarked.

The head of state said that the government's stake in the mining company was originally just 9 percent.

Then, in 2018, Indonesia secured a 51-percent stake to become Freeport's largest shareholder. Control of the shares increased state revenue, with 70 percent of the company's income flowing into state coffers, Widodo informed.

"Currently, 70 percent of Freeport's income goes to the state. Once we increase to 61 percent, 80 percent of their income will go to the state's pocket," he highlighted.

Meanwhile, in the revision of PP Number 96 of 2021, the government has made adjustments to create certainty of sustainable investment.

The adjustments made by the government in the regulation are aimed at acquiring Freeport by changing the terms of the company's contract extension in order to maximize the benefits obtained for Indonesia.

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Translator: Mentari Dwi G, Resinta Sulistiyandari
Editor: Azis Kurmala
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