Jakarta. Rosan Roeslani, the CEO of the Indonesian sovereign wealth fund Danantara, revealed on Wednesday why US miner Freeport-McMoran is willing to divest 12 percent of its stake in its local arm at no cost. It was simply thanks to the Indonesian side’s negotiation skills, he said.

A day earlier, Rosan announced that Freeport-McMoran was willing to let go of 12 percent of its shares, thereby granting Indonesia a bigger control of one of the world’s biggest copper and gold mines. Rosan claimed that Freeport-McMoran did not ask for something in return.

The Jakarta Globe later asked Rosan why Freeport-McMoran was being generous.

“Well, that’s the art of negotiation,” he said in his office.“We have been really negotiating this divestment deal back and forth. But finally, they have agreed to transfer 12 percent of its stake free of charge. In other words, we don’t have to pay anything to Freeport-McMoran. … The payments can be huge, but praise be to God, we managed to negotiate [the terms].” 

Rosan, who also serves as the investment minister, went on to say that Indonesia had asked Freeport-McMoran to set up two schools in Papua, the country’s easternmost region and the center of the company’s operations. These educational facilities would focus on science, technology, engineering, mathematics, and medicine at President Prabowo Subianto’s behest. There are plans for Freeport to establish hospitals in Papua, which still falls way behind in infrastructure development.

The administrative process is currently underway to finalize the 12 percent divestment deal.

“We have agreed on all of the points. Once this is done, we can immediately sign [the document].”

Rosan admitted that he booked the deal when he met with Freeport-McMoran’s top brass during his recent US trip.

The Globe is trying to reach out to Freeport for confirmation.

If everything goes as planned, the government’s shares in Freeport Indonesia will rise from the current 51.23 percent to around 63.23 percent. The government controls the shares via the state-run mining holding MIND ID, which is also now under Danantara’s wings. Freeport-McMoran today owns 48.77 percent of the shares. Energy Minister Bahlil Lahadalia had said that Jakarta planned on closing the divestment deal by October.

Freeport has suspended the operations of its Grasberg Block Cave mine in Papua after seven of its workers got trapped in a landslide. Two individuals had died in the disaster, while five others were still missing as of Friday. Estimates showed that the Grasberg ore body accounted for half of Freeport Indonesia’s estimated proven and probable reserves as of the end of 2024. The mine also makes up 70 percent of its previously forecast copper and gold production throughout 2029.