VP indicates govt to extend Freeport Indonesia?s contract

In what is seen as an indication that the government would eventually extend the mining contract of PT Freeport Indonesia, Vice President Jusuf Kalla said that the country will lose out on foreign investment if the government does not extend the contract of the giant firm to continue operating its gold mine in Papua.

"If we do not maintain [the existing] investment, how could we invite other investors," said Kalla in Jakarta on Wednesday.

Kalla said that Indonesia needs foreign investment to help accelerate economic growth. He added that it would be more difficult for the government to convince foreign investors to come if Freeport leaves the country.

The Freeport Indonesia contract extension has been in the spotlight after Minister of Energy and Mineral Resources Sudirman Said reported House of Representatives Speaker Setya Novanto to the House ethics council for meeting Freeport Indonesia president director Maroef Sjamsoeddin and allegedly claiming to have the approval of President Joko Widodo and Kalla in asking for shares in Freeport in exchange for helping the company extend its contract, which is set to expire in 2021.

Sudirman, Maroef and Setya have since testified before the ethics council.

The ethics council is currently deliberating whether they will summon other witnesses, particularly Muhammad Reza Chalid, an oil trader, who accompanied Setya in the meeting with Maroef.(*)