JAKARTA – PT Freeport Indonesia (PTFI) according to Publish What You Pay (PWYP) Indonesia will still postpone the construction of a smelter. The reason is none other than because there is no certainty that the contract extension will expire in 2021.

PWYP Indonesia National Coordinator Maryati Abdullah said the lack of certainty also led Freeport to regulate the amount of production. They are considered to increase the amount of production of raw mineral mining materials for export in large quantities.

“They have contracted Freeport until 2021. They set the production, now it is high because they cannot be certain of the extended contract,” he said in Jakarta.

This he said, made Freeport use the relaxation of raw mineral exports to increase revenue. While the smelter construction is considered not important because there is no certainty of business sustainability in the country.

“So that it will export raw materials and delay the construction of smelters, there is no certainty about the extension. They calculated the concentrate export permit, “he concluded.

Previously, Freeport Indonesia said it would only start the construction of a smelter in Gresik, East Java in June 2016. In fact, Freeport was required to complete the construction of its smelter in 2017 which was part of an agreement on the renegotiation of the work contract that had been agreed with the government since late 2014.

Freeport Indonesia Director and Executive Vice President Clementino Lamury revealed, currently the progress of the smelter construction plan is only 11.5%. The reason is that the signing of the engineering procurement construction (EPC) will only take place at the end of 2015.

“Progress of 11.5% is the preparation of reward based engineering design. Only part of the Petrokimia Gresik land has been reclaimed, half of it has not. We have already been exposed. End of July this year can be groundbreaking, “he said in a Hearing Meeting (RDP) with Commission VII of the Indonesian House of Representatives, Jakarta.

In Media, Media Coverage | PWYP Indonesia | September 26th, 2016