October 8, 2025 | 02:12 pm
TEMPO.CO, Jakarta - Indonesian Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia announced that negotiations over Indonesia’s acquisition of an additional 12 percent stake in PT Freeport Indonesia have been finalized.
“The additional negotiation with Freeport has been declared final. There will be an additional 12 percent,” Bahlil said in Jakarta on Tuesday, October 7, 2025, as quoted by Antara.
The divestment is one of the key requirements for Freeport to extend its Special Mining Business License (IUPK) for Production Operations, which is valid until 2041. This obligation is outlined in Government Regulation (PP) No. 25 of 2024 on the Implementation of Mineral and Coal Mining Business Activities.
Under Article 195B, paragraph 1 of the regulation, the Production Operation IUPK can be extended if several conditions are met, including the signing of a new share purchase agreement allocating at least 10 percent of shares, which cannot be diluted, to state-owned enterprises (SOEs).
With the completion of the divestment negotiations, the government’s ownership in PT Freeport Indonesia will increase from 51 percent to 63 percent. “The details will be finalized soon. The mining operations will continue until 2041, and discussions on the exact timeline are ongoing,” Bahlil added.
Earlier, CEO of the Indonesia's sovereign wealth fund Danantara Rosan Roeslani revealed that Freeport had agreed to release the 12 percent stake to Indonesia at no cost.
Rosan explained that the government initially targeted a 10 percent divestment, but through the negotiation process, Indonesia successfully secured 12 percent instead.
He also noted that, as part of the agreement, Freeport will build two universities and two hospitals near its mining sites to improve local healthcare access and expand educational opportunities.
When asked about how Indonesia managed to secure the additional stake without payment, Rosan attributed it to diplomatic finesse. “That’s the art of negotiation,” he said.
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