Bambang Ismoyo, Jakarta – The Indonesian government has granted Freeport Indonesia a limited export permit to ship copper concentrate overseas for the next four months, Energy and Mineral Resources Minister Bahlil Lahadalia announced on Friday.

The decision was made during a ministerial meeting, following discussions on Freeport's compliance with domestic processing requirements.

Indonesia has strictly banned raw mineral and ore exports since last year to promote domestic industrialization, particularly after Freeport completed the construction of its copper and gold smelter in Gresik. However, a fire incident at the newly built smelter halted operations, leading to an oversupply of copper concentrate in the company's warehouses.

"We made this decision in the interests of the nation, the company, and the people of Papua," Bahlil told reporters at his Jakarta office.

A government audit concluded that the fire at Freeport's smelter was a purely accidental incident. As a result, Freeport has been ordered to resume smelter operations by the end of June.

According to Bahlil, Freeport CEO Tony Wenas has signed a written agreement pledging to meet all government-imposed requirements.

Freeport has historically relied on raw material exports as its primary revenue source. However, as part of Indonesia's mining industrialization push, the government remains firm on its requirement for Freeport to process copper locally.

The Indonesian government holds a 51 percent stake in Freeport Indonesia.

Source: https://jakartaglobe.id/business/government-allows-freeport-to-export-copper-concentrate-until-jun