TEMPO.CO, Jakarta – PT Freeport Indonesia (PTFI) has submitted a draft agreement to the Indonesian government outlining the divestment of an additional 12 percent stake as part of the process to secure an extension of its Special Mining Business License (IUPK) beyond 2041.
"We have already submitted the draft to the government," PTFI President Director Tony Wenas said on Thursday, June 18, 2026, as quoted by Antara.
Tony said the share transfer agreement must be finalized before the government issues an extension of Freeport's IUPK, which is currently set to expire in 2041.
The planned transfer involves a 12 percent stake in PTFI currently held by U.S.-based mining giant Freeport-McMoRan Inc. (FCX). The divestment forms part of a memorandum of understanding (MoU) signed earlier this year between the Indonesian government, FCX, and PTFI regarding the extension of mining operations at the Grasberg mine in Central Papua.
"One of the requirements for the issuance of the extended IUPK is the signing of the share transfer agreement before 2041. The process is currently underway," Tony said.
The MoU was signed in Washington, D.C., on February 18, 2026, by Investment and Downstreaming Minister Rosan Roeslani, Freeport-McMoRan President and CEO Kathleen Quirk, and Tony Wenas.
Under the agreement, the government and Freeport reached six key understandings regarding the future of the Grasberg operation.
First, Freeport's IUPK will be amended to allow mining operations to continue throughout the life of the mine's reserves.
Second, PTFI committed to increasing support for local communities in Papua, including funding the construction of a new hospital and two medical education facilities.
Third, the company pledged to increase exploration spending and accelerate studies aimed at identifying new long-term resources and expansion opportunities.
Fourth, PTFI agreed to continue prioritizing domestic value-added activities through the processing and sale of refined copper, precious metals, sulfuric acid, and other products within Indonesia.
The agreement also grants the company flexibility to expand exports of processed copper to the United States based on market demand and U.S. supply needs.
Fifth, FCX will transfer a 12 percent stake in PTFI to the Indonesian government in 2041. The transfer will be made at no cost, although the recipient will be required to reimburse FCX for a proportional share of investments that continue to generate benefits after 2041.
FCX will retain its current 48.76 percent ownership in PTFI until 2041. Following the divestment, its stake is expected to decline to approximately 37 percent beginning in 2042.
The sixth point stipulates that the existing governance structure, operational framework, shareholder agreements, and other key contractual arrangements will remain in place throughout the life of the mine.
Tony expressed optimism that the licensing process would proceed smoothly, allowing Freeport to continue operating and contributing to local and national economic development.
"We hope to secure the IUPK extension so that the benefits we provide to Mimika Regency, Central Papua, and Indonesia can continue throughout the lifespan of the mine," he said.
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