Indonesia's Energy Minister Denies Holding Up Freeport Exports

Clarification on Export Status

Indonesia's Minister of Energy and Mineral Resources, Bahlil Lahadalia, has strongly denied allegations that his ministry has been holding up PT Freeport Indonesia's (PTFI) concentrate exports. Speaking at the Presidential Palace complex in Jakarta, Bahlil emphasized that there were no holds on Freeport's exports and that all necessary processes had been completed without any undue delays.

Economic Impact Context

The minister's statement comes amid concerns that the alleged delay in Freeport's exports had significantly impacted the economic performance of Papua Tengah, contributing to a sharp contraction in economic growth of -8%. The region's economic performance is closely tied to Freeport's mining activities, making any disruptions particularly impactful.

Previous Export Relaxation

Bahlil also highlighted that the Ministry had previously provided export relaxation to Freeport during technical issues at their smelter in Gresik, East Java. This temporary permission allowed Freeport to continue exports while addressing the operational challenges. However, this export permit extension ended in September 2025.

Market and Economic Implications

The clarification is significant as it addresses concerns about potential supply chain disruptions from one of Indonesia's largest mining operations. Freeport's activities are crucial not only for the local economy but also for Indonesia's overall export performance. The denial of export holds is likely to stabilize market perceptions regarding Indonesia's mining sector operations and regulatory environment.