Luhut Allows Freeport to Export Concentrates

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    The government has allowed PT Freeport Indonesia to export concentrates. It is because this US company already submitted the status change from work of contract (KK) to special mining license (IUPK).

    The Maritime Affairs Coordinating Minister Luhut Binsar Pandjaitan explained because the government would issue a temporary IUPK, so Freeport can export again.

    “It takes times to process IUPK. The interim IUPK would only valid for six months,” said Luhut in his office in Jakarta, yesterday.

    Since January 12, 2017, Freeport do not export its concentrates due to the regulation CoC holders must domestically refining and processing concentrates. Otherwise, the companies change its status as the IUPK holders.

    Luhut made sure that the government did not break the regulation by issuing the interim license. He said it is the best solution. The mining activity in Tambang Grasberg would slump due to delayed export in a long time which will affect the local economy in mining location and the mass unemployment.

    Nevertheless, Luhut expressed that it is not a careless effort to have the interim license in the pocket. The government will ascertain the company eligible for this.

    Luhut denied the assumption that the interim license aimed to facilitate Freeport.

    “This is for all companies, no hidden purpose of this regulation,” he emphasised.

    Yesterday, the Minister of Energy and Mineral Resources (ESDM) Ignasius Jonan said it needs two days to process the interim IUPK publication.

    “We are processing it. It could be one or two days to have it complete. The permanent license needs three to six months, we cannot let the export stop in that time, it will interfere the local economy and create a mass unemployment” said Jonan. (Dds/Pas)

     

    Source: Rakyat Merdeka

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