Freeport Agrees to Grant Indonesia 12 Percent Stake, Adds Pledges for Universities and Hospitals

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JAKARTA, Investortrust.id — Freeport McMoRan, ticker FCX, agrees to grant Indonesia an additional 12 percent stake at no cost, Rosan Perkasa Roeslani said on Tuesday, Sep 30, 2025, after meeting company leaders in the United States, marking a larger-than-planned divestment that strengthens state control over PT Freeport Indonesia and advances permit renewal talks.

Rosan, who serves as Minister of Investment and Chief Executive Officer of Danantara Indonesia, said he met Chairman Richard Adkerson and Chief Executive Officer Kathleen Quirk in the United States. “They have already agreed to release 12 percent of the shares. Yesterday in the U.S. I met the leadership directly, with the CEO and the owner, and they have agreed to give it free of charge,” Rosan told reporters at the Ministry of Investment and Downstreaming in Jakarta.

He added that the agreement went beyond the government’s original goal. “We first targeted 10 percent, but thank God, it reached 12 percent now,” he said. Rosan also noted Freeport’s commitment to build two universities and two hospitals in Papua, saying: “These projects will enhance education, healthcare, and strengthen the role of medical personnel around Freeport’s operations.”

The divestment formed part of the requirements to extend PT Freeport Indonesia’s special mining business license. Government Regulation Number 25 of 2024 on mineral and coal mining requires at least 10 percent of new, non-dilutable shares to be sold to a state-owned enterprise before an extension can be approved. Officials said part of the new stake would later be transferred to regional enterprises in Papua to better anchor local participation.

Minister of Energy and Mineral Resources Bahlil Lahadalia confirmed the plan had been coordinated at the highest level. “We have reported to President Prabowo, and he has given direction for an additional stake of around 10 percent or more,” Bahlil said last week. He added that part of the stake “will go to Papua’s regional companies, so that future exploration can be carried out with stronger local involvement.”

If implemented, the additional 12 percent would raise Indonesia’s ownership in PT Freeport Indonesia from 51 percent to 63 percent by 2041.

Grasberg Block Cave Incident

The negotiations came at a time when Freeport’s operations in Papua faced disruption. On Sep 8, 2025, a sudden rush of wet material at the Grasberg Block Cave forced PT Freeport Indonesia to halt production. Two workers were found dead, and five remain missing.

Chairman Richard Adkerson and CEO Kathleen Quirk issued a joint statement: “We are grieving for our coworkers lost in this tragic incident and extend our sincere condolences to the families who lost loved ones and who remain missing.”

They confirmed that operations would remain suspended until search and rescue efforts were completed. “Our highest priority is the recovery of the missing team members. We are working around the clock to clear mud and debris,” Freeport’s leadership said.

The company projected a significant impact on production, warning that copper and gold sales for the fourth quarter of 2025 would be “insignificant” compared with earlier guidance. Production could remain about 35 percent below pre-incident forecasts through 2026, before a full recovery in 2027.

Long-Term Interests

Authorities said securing the larger stake was crucial to safeguard Indonesia’s long-term fiscal and economic interests as Grasberg output nears a projected peak in 2035. Without a timely extension of the mining license, exploration would face a regulatory cliff that could cut output and weaken state revenues.

By securing a higher, non-dilutable stake and advancing the permit process, policymakers sought to lock in greater control and a more predictable revenue stream while aligning corporate commitments with local development goals in Papua

“If we don’t extend beyond 2041, then production will decline sharply after 2035. That would affect company productivity, state revenue, and jobs,” Bahlil said.

Rosan said the social investments committed by the company would complement the state’s ownership strategy and help raise human capital in areas surrounding the mine. He emphasized that the negotiation outcome, including the free-of-charge structure and the 12 percent size, strengthened Indonesia’s position as majority owner and set a clearer path toward concluding permit extensions under the current legal framework.

Rosan concluded that the outcome was a win for Indonesia’s future. “The negotiations strengthen our position as majority owner and provide certainty for extending Freeport’s operations under Indonesian terms,” he said.