Jakarta, Indonesia Sentinel — Indonesia’s Minister of Energy and Mineral Resources (ESDM), Bahlil Lahadalia, is considering the extension for copper concentrate export of PT Freeport Indonesia (PTFI) in 2025. This comes as the government continues its broader push to halt raw mineral exports and accelerate copper downstreaming initiatives.
Minister Bahlil revealed that PT Freeport Indonesia has formally submitted a request to extend its copper concentrate export permit to the Ministry of Energy and Mineral Resources.
Under existing regulations, PTFI was supposed to cease copper concentrate exports starting January 1, 2025. However, the company is seeking leniency following a fire at its smelter facility in Gresik, East Java, in October 2024, which disrupted copper cathode production.
“Freeport has submitted their export permit request for 2025. The Ministry of Energy and Mineral Resources is currently discussing it, and we’ve held meetings with the Coordinating Ministry for Economic Affairs,” Bahlil stated at the Downstream Oil and Gas Regulatory Agency (BPH Migas) office in Jakarta on Tuesday, January 7, 2025, as reported by Kumparan.
Bahlil also reiterated that Freeport’s request for additional copper export allowances stems directly from the fire incident at its smelter facility, which was intended for the downstreaming process of copper concentrate.
However, Energy Minister Bahlil Lahadalia has refrained from disclosing details regarding the proposed export volume or the duration of the requested extension. He emphasized that the government’s final decision will carefully consider both national interests and Freeport’s operational needs.
Raw Mineral Export Ban
Indonesia officially banned the export of raw minerals, including copper concentrate, since June 10, 2023, under the Mining Law No. 3 of 2020. The government had previously emphasized that PT Freeport Indonesia (PTFI) must cease copper concentrate exports, and has directed that the refining process for mineral commodities to be conducted domestically.
PTFI was initially granted an export relaxation permit until May 31, 2024, due to delays in completing its smelter caused by the COVID-19 pandemic. The relaxation was later extended from June 1, 2024, to December 31, 2024.
Exports were set to stop entirely by January 1, 2025, aligning with the expected completion of Freeport’s smelter facility in Gresik.
However, the Gresik smelter suffered a fire in October 2024, just months before the export permit’s expiration. This incident disrupted copper cathode production, prompting Freeport to seek another export permit extension from the government.
Read also : Indonesia Weighs Export Permit Extension for Freeport Amid Smelter Repairs
Export Renewal in Process
The permit renewal process is currently underway, as reported by Investor.id. The Ministry of Energy and Mineral Resources, in collaboration with other relevant ministries, is holding special meetings to deliberate on Freeport’s export permit request.
Minister Bahlil explained that the outcome of these discussions will be reported to President Prabowo Subianto. The final decision is expected to outline specific details regarding the permitted export volume and timeframe.
“We will await the results and report them to the President,” Bahlil said. “Whatever the decision, it will certainly be made with the best interests of both Freeport and the country in mind.”
The decisions comes amid the government efforts to halt raw mineral exports and accelerate downstreaming initiatives. Therefore, the outcome of the government’s deliberation is expected to have significant implications for Indonesia’s mineral export policy and the country’s long-term resource management strategy.
(Raidi/Agung)
