Freeport Secures Indonesian Government Support for Post-2041 Mining Operations
Jakarta – PT Freeport Indonesia (PTFI) has received a significant boost with the Indonesian government’s commitment to extending its mining operations beyond 2041. A Memorandum of Understanding (MoU) was signed on February 18, 2026, in Washington, D.C., solidifying this agreement and outlining a pathway for continued investment and resource optimization. The signing was witnessed by Indonesian President Prabowo Subianto.
Key Agreements and Stakeholders
The MoU was signed by Rosan Perkasa Roeslani, Minister of Investment and Downstreaming/Head of BKPM, Kathleen Quirk, President and CEO of Freeport-McMoRan Inc., and Tony Wenas, President Director of PT Freeport Indonesia. This agreement signifies a strategic step towards ensuring the long-term sustainability of operations and investments.
Expanding Indonesian Ownership
A key component of the MoU is the commitment to increase Indonesia’s ownership in PTFI by 12% in 2041. This move aligns with the Indonesian government’s broader strategy of increasing state control over its natural resources.
Economic Impact and Future Investment
The extension of Freeport’s operations is projected to generate substantial economic benefits for Indonesia, particularly for the Papua region. Tony Wenas stated that the agreement is expected to yield approximately US$6 billion (around IDR 90 trillion, assuming current commodity prices) in state revenues annually. This includes around IDR 14 trillion for regional governments. The continued operation is too expected to sustain around 30,000 jobs and support community development programs with an annual investment of approximately IDR 2 trillion.
Optimizing Resources and Ensuring Continuity
According to Wenas, the MoU will optimize resources identified through detailed exploration, aiming to increase reserves and maintain production continuity after 2041. This proactive approach to resource management is crucial for ensuring the long-term viability of the mining operations.
Broader Collaboration
The signing of the MoU occurred during a Business Summit hosted by the US-ASEAN Business Council (US-ABC), where 11 MoUs worth a total of US$38.4 billion were signed between Indonesian and American businesses. These agreements span various sectors, including mining, energy, agribusiness, textiles, manufacturing, and technology development, highlighting the growing economic partnership between the two nations. Source
Freeport’s Perspective
Tony Wenas, President Director of PT Freeport Indonesia, expressed his satisfaction with the agreement, stating it ensures sustainable contributions to the country and, specifically, the people of Papua. Source