REPUBLIKA.CO.ID, JAKARTA -- The Energy and Mineral Resources (ESDM) and Finance Ministry still need to discuss the change of PT Freeport Indonesia's status from Contract of Work (CoW) to a Special Mining Permit (IUPK) company.

"In principle, it will be discussed with the finance minister," ESDM Minister Ignasius Jonan stated after a meeting with President Joko Widodo at the State Palace here on Monday.

Freeport has called for applying old regulations that were used when it was operating under a CoW status. Jonan noted that if it changes the status into an IUPK, several provisions will also be altered. "If (the status of a company) is changed into an IUPK, it will have many provisions. Let the finance minister review which old regulations can be used as this falls under the domain of the tax law similar to the regional government laws, levies, and others," Jonan remarked.

PT Freeport Indonesia is prepared to end its CoW status, after having it for about five decades, and change it into IUPK, so that it could regain a permit to export concentrate that had been stopped since January 12, 2017. Through the newly introduced Government Regulation No. 1 of 2017, mining companies were urged to change their CoW status to an IUPK to enable them to export raw minerals.

It was previously reported that Freeport claimed it had not yet reached a common ground with the government on the change of status from CoW to an IUPK. "We are awaiting a temporary IUPK to carry out exports (of raw minerals), but the government has not yet issued a permit to us," Freeport spokesman Riza Pratama stated after a hearing with the House of Representatives in Jakarta on Thursday (Feb 9).

He pointed out that PT Freeport's production is still hampered, as it could not yet carry out exports. However, he said, Freeport has committed to changing its status into an IUKP, so that it can carry out exports. The process is still being discussed with the government, as both the company and government had not yet reached a common consensus on several points. "This a transitional process that could not be completed in a short period of time since there are still things that have to be submitted to and discussed with the government," he added.

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