Washington. The Indonesian government has extended the special mining business permit of Freeport Indonesia (PTFI) through 2041 and for the remaining life of the mine, following the signing of a memorandum of understanding witnessed by President Prabowo Subianto in Washington on Wednesday.

The agreement was signed by Investment Minister Rosan Roeslani on behalf of the Indonesian government, President and CEO Kathleen Quirk representing Freeport-McMoRan Inc., and President Director Tony Wenas for Freeport Indonesia.

Tony said the understanding marks a strategic step to ensure operational continuity and long-term investment certainty. The extension will allow optimization of identified mineral resources through further exploration to increase reserves and maintain production beyond 2041.

The MoU also provides for an additional 12% increase in Indonesia’s ownership in PTFI by 2041.

“With this agreement, contributions to the state — particularly to the people of Papua — will be sustained through estimated annual state revenues of around $6 billion, or Rp 90 trillion, assuming current commodity prices,” Tony said in a statement.

He added that regional governments are expected to receive around Rp 14 trillion annually, while the project will support approximately 30,000 jobs and allocate about Rp 2 trillion per year for community development programs.

“All of this aligns with the mandate of the 1945 Constitution that natural resources must be utilized for the greatest benefit of the people,” Tony said.