Jakarta. Indonesia plans to raise its ownership in Freeport Indonesia (PTFI) by more than 10 percent, potentially lifting the government’s stake to over 61 percent, Energy and Mineral Resources Minister Bahlil Lahadalia said on Monday.

Speaking after a closed-door meeting with President Prabowo Subianto, Bahlil revealed that negotiations with Freeport are progressing beyond the initial target of an additional 10 percent stake. He has been tasked with accelerating talks to finalize the deal.

“Initially we agreed to increase our shares by 10 percent, but the negotiations have now developed further, and God willing, it could be more than that,” Bahlil told reporters at the Presidential Palace complex in Jakarta.

The government currently controls 51 percent of PTFI through state mining holding company Mineral Industri Indonesia (MIND ID), which became the majority shareholder in 2018. Raising the stake to over 61 percent would strengthen Indonesia’s hold on one of the world’s largest copper and gold mines, located in Grasberg, Papua.

Bahlil linked the planned share purchase to the renewal of Freeport’s operating contract, which runs until 2041. “If the deal is finalized, we will consider extending Freeport’s contract,” he said.

He also added that the price of the additional shares would be "relatively low," citing the thin book value of Freeport’s remaining assets under the current arrangement. “For more than 10 percent, the cost is very cheap,” Bahlil said.

Freeport first signed a mining contract with Indonesia in 1967, giving the US-based company exclusive rights to explore and develop Grasberg. The contract was extended in 1991 to cover operations until 2021, sparking public debates over Indonesia’s share of revenues.

In 2009, Jakarta began pushing for revisions to Freeport’s contract to secure greater benefits, including higher royalties and local ownership. After years of negotiations, Freeport agreed in 2018 to divest 51 percent of its Indonesian unit to the government in a $3.85 billion deal. The agreement also required Freeport to build local smelters, aligning with former President Joko Widodo’s policy of promoting downstream industries.