Freeport Will Sue to Arbitration

Maritime coordinating minister Luhut Binsar Pandjaitan welcome the threat of the Chief Executive Officer of Freeport-McMoran Richard Adkerson, who plans to bring the case of Freeport to the path of international arbitration. “Nice to the arbitration. Let no certainty to the law,” said Luhut.

Right this way, all the rules and terms already given.” said Luhut in the Office of the coordinating Ministry for Maritime, Thursday, February 21, 2017.

According to Luhut, in PT Freeport Indonesia there are a number of things that are not done by companies from the United States. They should build smelster and divested a stake of 51 percent in 2009. “Freeport Indonesia should the divestment of 51 percent was 2009, she had to wake up the smelter, but they doesn’t do,” he said.

According to Luhut if international arbitration actually occurred, the extension of Freeport’s contract could expire in 2021. As for the results of the arbitration will determine how the later contract is executed. “Yes, determined from the arbitration. They’s asking that yes. Depends, if their arbitration, finished 2021,” he said.

Luhut claimed, the government has been ready to face international arbitration of Freeport. What Freeport will reach 50 years of operation in Indonesia in 2021. “Indonesia don’t be so majority? Don’t want to we dictated? We’re pretty good, and want to business to business. No affair with the state, they’re private sector,” he said.

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Yesterday in a press conference held at the Fairmont Hotel, Richard Adkerson said his company gives 120 days to Indonesia to consider the differences that occur between the government and Freeport Indonesia related to the freeport contract of work.

Adkerson said it is ready to bring the problems between the Freeport and Indonesia to the international arbitration institutions. As for the previous Freeport rejects the rule of the government to change the status of the contract work they become Special Mining Business Permit or IUPK.

The government of Indonesia stick to the existing regulations which prohibit contract work to export the concentrate before it turns into IUPK. The rule was in accordance with the Government Regulation Number 1 Year 2017 on the Implementation of Business Activities of Mineral and Coal Mining.

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