Indonesia’s control in PT Freeport Indonesia (PTFI) has risen to 63% following a historic agreement with Freeport-McMoRan (FCX). The deal, reached after direct negotiations, boosts the government’s stake from 51% and marks another milestone in Indonesia’s resource management strategy. This achievement highlights a Freeport Ownership Increase that strengthens the country’s influence over national mining assets.
Negotiations Lead to Freeport Ownership Increase
CEO of Danantara, Rosan Perkasa Roeslani, confirmed the deal after a series of talks with Freeport’s top executives in the United States. He met with Freeport-McMoRan Chairman Richard Adkerson and CEO Kathleen Quirk, where both parties finalized the arrangement.
“They (FCX) have already agreed to the 12%. I also met directly in the U.S. with the CEO and the owner, and they agreed to provide the 12% shares free of charge,” Rosan said in Jakarta on September 30, 2025, as reported by Kompas.com.
Originally, negotiations focused on a 10% share transfer. However, after extended discussions, the figure rose to 12%, giving Indonesia a stronger position. Rosan emphasized that this increase would not impact state finances, as the shares were handed over without cost.
Government Stake in Freeport Reaches 63%
With this Freeport divestment deal, Indonesia’s ownership in PTFI has now reached 63%. The government already held 51.23% after a landmark acquisition in 2018. At that time, through state mining holding company MIND ID (formerly PT Inalum), Indonesia paid US$3.85 billion to secure majority control. The acquisition boosted the nation’s ownership from just 9.36% to over half of the company.
This new development enhances Indonesia’s position as the dominant shareholder, reducing Freeport-McMoRan’s portion to less than 40%. The increase solidifies the country’s control over one of the world’s largest gold and copper mines.
Freeport’s Commitment to Papua Development
Beyond shares, Freeport pledged to support social development in Papua, where its mining operations are based. Rosan revealed that Freeport has committed to building two universities and two hospitals in the region. The facilities aim to expand healthcare access and strengthen the role of medical professionals while improving education opportunities for local communities.
This initiative demonstrates Freeport’s acknowledgment of its long-term presence in Papua and its responsibility to contribute to regional welfare. For the government, the partnership ensures that the benefits of resource extraction extend beyond economic gain, reaching directly into community development.
What Freeport Ownership Increase Means for Indonesia
The Freeport Ownership Increase gives Indonesia more influence in shaping the future of PTFI while reinforcing national interests in resource control. With a 63% majority stake, the government stands to benefit from increased revenues and long-term security over critical mining assets.
At the same time, Freeport’s community commitments provide opportunities for education and healthcare improvements in Papua. Together, these developments highlight how strategic negotiations and government support can deliver both economic and social gains. Looking forward, Indonesia’s strengthened position sets the stage for future agreements that will define the mining sector beyond 2041.
Source: money.kompas.com, finance.detik.com
Image: Jakarta Post / Nethy Dharma Somba
