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Energy Minister Bahlil Rejects Freeport’s Copper Concentrate Export Request

Alfida Rizki Febrianna
December 19, 2024 | 6:58 pm
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Energy and Mineral Resources Minister Bahlil Lahadalia speaks to a BTV journalist in Pantai Indah Kapuk 2, Tangerang, on Wednesday, Dec. 18, 2024. (Alfida Rizky Febrianna)
Energy and Mineral Resources Minister Bahlil Lahadalia speaks to a BTV journalist in Pantai Indah Kapuk 2, Tangerang, on Wednesday, Dec. 18, 2024. (Alfida Rizky Febrianna)

Jakarta. Energy and Mineral Resources Minister Bahlil Lahadalia has firmly rejected mining giant Freeport Indonesia’s request to export copper concentrates, citing "national interests."

In an exclusive interview with BTV on Wednesday, Bahlil criticized Freeport for repeatedly seeking export permits despite the government’s longstanding ban on raw mineral exports.

“This has been the same old song played by Freeport since I was a student until now, as the energy minister. They’ve kept the same theme, and I’m very familiar with it,” Bahlil said.

Copper concentrate, the first commercial product in copper mining, has been subject to an export ban under the Joko Widodo administration’s policy to encourage domestic processing of raw minerals. The policy is part of Indonesia’s broader effort to boost its downstream industries, ensuring more value-added processes take place domestically and contributing to the national economy.

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Freeport’s latest request to export copper concentrates follows a fire that damaged parts of its newly built smelter in Gresik, East Java. The smelter, designed to process raw copper into finished products, is a key component of Freeport’s compliance with Indonesia’s regulations.

While acknowledging the impact of the fire, Bahlil urged Freeport to focus on repairing the facility rather than using the incident as an excuse to bypass export restrictions.

“They need to present a clear plan outlining how long the repairs will take and when production can resume,” Bahlil said.

Freeport has historically relied on exporting raw materials as its primary revenue source. However, with Indonesia’s ongoing push for industrial downstreaming, the government has been adamant that Freeport fulfills its obligations to process copper locally.

The minister also revealed that he had received a scholarship from Freeport during his university years but maintained that his decisions were guided by fairness and prioritizing the nation’s interests.

“I put Indonesia above everything else and cannot compromise on the country’s interests,” Bahlil said, noting that the Indonesian government holds a 51 percent stake in Freeport.

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