No Progress Yet in Freeport Contract Amendment
6 January 2015 16:40 WIB
TEMPO.CO, Jakarta – The amendment to PT Freeport Indonesia’s contract has not been completed yet despite the ongoing six-month negotiations that began in July 2014, when an MoU was signed by Freeport and the Indonesian government. The talks about the amendment are still about legal documents.
“The amendment process is still ongoing. We’re still discussing legal documents, so the discussion still proceeds legally,” said PT Freeport Indonesia president director Rozik B. Soetjipto on Tuesday.
Rozik said there had been no significant develepments in the discussions on the amendment, and that the six points of renegotiation had also been canvassed.
Freeport signed an MoU for contract renegotiation on July 7, 2014. In the agreement, there are six points of renegotiation, which are the construction of processing plants and smelters, land areas for mining, change of contract extension to mining permit (IUP), increase in royalty for state revenue, divestment of shareholding and the use of domestic goods and services.
Of the six, state revenue is the topic requiring further discussions, as the tax rate paid by Freeport refers to two provisions: based on the prevailing regulations and the contract.
AYU PRIMA SANDI
