Jakarta – Freeport-McMoran (FCX),​ a U.S.-based mining ‍company, has agreed to ⁤transfer 12% ownership of‌ PT Freeport⁣ Indonesia (PTFI) to the ​Indonesian government. This agreement was announced by⁢ Rosan Perkasa Roeslani, CEO of indonesia’s Investment ​Management Agency (BPI) of Daya Anagata Nusantara, on September‌ 30,⁤ 2025.

Rosan ⁤assured‍ the public that this share transfer will ‍not require state​ funds, stating he confirmed this during direct discussions with Freeport-McMoran Chairman ⁣Richard Adkerson​ and chief ‌Executive Officer Kathleen Quirk in the United⁣ States. ⁣ “they (FCX) have agreed ‌to 12%, I also in the US met the leadership⁣ directly with their CEO directly with the owner and they have agreed to provide free of charge,” Rosan stated, ‌as reported ​by CNBC Indonesia.

Background: PT Freeport Indonesia and Indonesian Ownership

PT Freeport Indonesia operates one of the world’s largest ​gold and copper mines, the Grasberg mine, located in Papua, Indonesia. The Indonesian government has long sought increased ownership⁢ in the mine,⁢ viewing⁤ it as a crucial asset for national revenue. Previous negotiations have centered around increasing Indonesian ownership beyond the​ current levels.

The⁤ history of Indonesian ownership in PTFI is complex. In 1991, Freeport-McMoran⁢ signed a ‌Contract of Work ⁤(cow) with the⁢ Indonesian government, granting​ it the right ‌to operate the Grasberg mine.‌ ​ over the years, the government has renegotiated the⁣ terms of this agreement, aiming for greater⁢ control⁣ and a larger share of the profits. Reuters reported in December 2023 ⁢that discussions were ongoing regarding a further increase ‍in Indonesian⁢ ownership.

Details of the⁢ Agreement

The 12% stake transfer represents a notable increase ⁤in Indonesian government ownership of⁤ PTFI. ⁢‌ The exact valuation of this 12%⁣ share has not been publicly disclosed, but Rosan Perkasa Roeslani emphasized that it will be provided “free ⁣of charge” by Freeport-McMoran. This suggests a strategic ​move by Freeport-McMoran to strengthen ‍its relationship with the Indonesian ‍government and ensure continued operational stability.

The transfer is expected to be‌ completed‌ in⁤ the near future, pending final regulatory⁤ approvals. The Indonesian government⁤ intends to utilize‌ this increased ownership to ‌maximize the economic benefits derived from the Grasberg mine, including⁤ increased revenue ‌and greater control over resource management.

Impact and Implications

this ⁣agreement has several key implications:

• Increased Government revenue: ‍ A larger ownership stake will translate to a greater share of ‍profits for the Indonesian government.
• Strengthened National ‌control: The government‍ will have more influence over ⁣the operation ‌and management of the Grasberg mine.
• Positive investor Signal: The agreement⁣ demonstrates Indonesia’s commitment ⁢to ⁢attracting foreign investment while ensuring national interests are protected.
• Potential for ⁤Further Negotiations: This transfer could pave the⁤ way for future ⁢negotiations regarding other aspects of the CoW,such ⁢as royalty ‌rates and ​environmental regulations.