JAKARTA. Freeport Mc Moran, which is the parent of PT Freeport Indonesia, is planning to reduce the productions. If the productions decline, the layoff is a possible option. Freeport is even threatening to sue Indonesian Government.
In the financial report of Freeport as of December 2016 that is published on the official website of the company, Freeport mentions that the company may consider taking legal action to enforce the company’s rights, which are mentioned under the contract of work. This action would be carried out if Freeport and the Government of Indonesia fail to achieve mutually satisfactory agreement.
President Director of PT Freeport Indonesia Chappy Hakim said that Freeport is trying to maintain its existence after the issuance of the Government Regulation No 7/2016 on Mineral and Coal Mining Business, as well as the two Minister of Energy and Mineral Resources or ESDM’s regulations. To date, the negotiation process has not finished yet. “I cannot make any explanation before everything is settled,” Chappy said.
Meanwhile, the Spokesman of Freeport Indonesia Riza Pratama added that Freeport is willing to change the status to Special Mining Permit (IUPK) if the Government of Indonesia can provide guarantee on investment stability. “There should be a contract on investment stability. Hopefully, items of the contract would be similar with contract of work, since the contract is a kind of investment guarantee,” he said.
As of Friday (27/1), the government had not yet responded to Freeport’s demand. In this case, the export of mineral concentrate is still banned. Therefore, according to Reza, mineral production in Grasberg mine will be reduced to 60%.
Riza said that to date the concentrate productions remain normal. However, the productions would be reduced if the company fails to obtain the license.
Despite of the export ban, to date, the shipping process of the concentrates remains normal for domestic destination, namely PT Smelting Gresik, East Java.
Riza was still refusing to explain the agenda of legal action, which might be filed by Freeport against the Indonesian Government. “We are maintaining cooperation with the government to sustain exports and operation,” Riza told KONTAN, Sunday (29/1).
Vice Minister of ESDM Arcandra Tahar said, the government has issued regulations that are applied to all companies. “All are equal before the law,” he stressed. The government has not yet responded to the plan of Freeport McMoran to file the lawsuit. (Muhammad Farid/Translator)
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