Jakarta – A memorandum of understanding (MoU) securing the future of PT Freeport Indonesia’s mining operations beyond 2041 has been signed, a move hailed by company leadership as a strategic step toward long-term investment and sustained contributions to Indonesia. The agreement, formalized on February 18, 2026, in Washington, D.C., was witnessed by President Prabowo Subianto and signed by representatives from the Indonesian Ministry of Investment and Maritime Affairs, Freeport-McMoRan Inc., and PT Freeport Indonesia.
The deal ensures continued operations at one of the world’s largest gold and copper mines, located in Papua province, and outlines a pathway for increased Indonesian ownership. Tony Wenas, President Director of PT Freeport Indonesia, described the MoU as crucial for optimizing resources and maintaining production levels well into the future. This agreement follows years of negotiations regarding the long-term operational framework for the mine, a vital component of Indonesia’s economy.
A key element of the agreement is the commitment to increase Indonesian ownership in PT Freeport Indonesia by 12% by 2041, bringing the total state ownership to 61%. This aligns with the Indonesian government’s broader strategy of increasing national control over its natural resources. The signing ceremony included Rosan Roeslani, Minister of Investment and Head of the Investment Coordinating Board (BKPM), Kathleen Quirk, President and CEO of Freeport-McMoRan Inc., and Tony Wenas, representing PT Freeport Indonesia.
Securing Long-Term Investment and Production
According to a statement released by PT Freeport Indonesia, the MoU is designed to ensure the continuity of operations and attract further investment by maximizing identified resources through detailed exploration. “This understanding is a strategic step to ensure the sustainability of operations and long-term investment by optimizing resources that have been identified through detailed exploration to increase reserves and maintain production continuity after 2041,” Wenas stated in a press release. The company emphasized its commitment to enhancing reserves and maintaining consistent production levels beyond the current operational timeframe.
Economic Impact and Community Benefits
The extension of Freeport’s operations is projected to have a significant economic impact, particularly for the Papua region. PT Freeport Indonesia estimates annual contributions to the nation of approximately US$6 billion (roughly Rp90 trillion as of February 2026) assuming current commodity prices. This includes around Rp14 trillion for regional governments, the preservation of approximately 30,000 jobs, and around Rp2 trillion annually dedicated to community development programs. These figures underscore the mine’s importance as a major employer and economic driver in a region facing significant development challenges.
The company’s continued investment in Papua is expected to support infrastructure projects, education initiatives, and healthcare improvements, contributing to the overall well-being of local communities. The Indonesian government views the agreement as a win-win scenario, balancing national interests with the need to attract foreign investment and maintain a stable mining sector.
Recent Developments and Past Negotiations
The signing of the MoU follows a period of complex negotiations between the Indonesian government and Freeport-McMoRan. In July 2025, a planned meeting between President Prabowo Subianto and Tony Wenas was unexpectedly postponed after Wenas waited for over three hours at the Presidential Palace in Jakarta as reported by Katadata. At the time, Wenas declined to comment on the agenda of the anticipated meeting or rumors of a management reshuffle within Freeport Indonesia, but did confirm that discussions regarding a further 10% divestment of shares were ongoing.
The current agreement builds upon previous efforts to restructure Freeport’s operations in Indonesia, including the extension of its special mining license (IUPK) to 2041. The extension of the IUPK was a critical step in securing the long-term future of the Grasberg mine, one of the largest gold mines in the world.
Looking Ahead
With the MoU now signed, the focus shifts to the implementation of the agreed-upon terms, including the process of increasing Indonesian ownership and finalizing details regarding future investment plans. The Indonesian government and Freeport-McMoRan are expected to continue working closely together to ensure a smooth transition and maximize the benefits of the agreement for all stakeholders. Further details regarding the timeline for the 12% ownership transfer are anticipated in the coming months.
The successful negotiation and signing of this agreement represent a significant milestone in Indonesia’s efforts to strengthen its position in the global mining industry and secure its economic future. The continued operation of the Grasberg mine is expected to play a vital role in supporting Indonesia’s economic growth and development for decades to reach.
This story will be updated as more information becomes available.
