GROUP 7 : PT FREEPORT

PT FREEPORT INDONESIA

1. Khoirul rifai

2. Adi Gunadarma Idsuka

3. Nahdia Rahma Putri

4. Febri Ayu Wulandari

5. Salsabila Novia Putri

6. Bijak Rachmanu Nantagumilang

7. Veronika Erika Moniung

PT FREEPORT

 

Company History

The beginnings of a PT Freeport Indonesia began in 1904-1905, when a private institution from the Netherlands, the KNAG (Koninklijke Nederlandsche Aardrijkskundig Genootschap), could organize the Dutch Geographical Institute, an expedition to Southwest Papua, and there was the main objective that supposedly had lies there. Mount Snow to visit in the land of Papua. The first record of these snow mountains comes from Captain Johan Carstensz, who in 1623 with his two ships Aernem and Pera on their way to the "South" to the southern waters of the country of Papua, suddenly deep inland to see the snow glistening and deep. February 1623, on top of a "very high" mountain, partly covered in snow. In a note, Carsztensz has become scorn towards his friends, who believe Carstensz only imagined. Although on the first expedition the KNAG was unsuccessful in finding the iceberg mentioned in Captain Carstensz's journal, this was a precursor to major Dutch attention to the Papua region. Maps of Papua were first made from 1907 to 1915 as a result of military expeditions to this area. This military expedition then sparked the desire of civilian scientists to climb and reach within a snow mountain. In 1971, Freeport had built a supply center and Timika Airport, they also built the main road, namely as access to mines and roads in remote areas as access to villages. In 1972 President Soeharto called the city of Freeport, gradually establishing a name, namely Tembagapura.

Freeport in 1973 appointed its main representative as the Indonesian state and Freeport Indonesia's first president as director. It was Ali Budiarjo, who served as Minister of Defense and Director of National Development in the 1950s, husband of Miriam Budiarjo, who was involved in several pro-independence negotiations for Indonesia, as Secretary of the Linggarjati Negotiation Delegation and as a member of the delegation in Renville.

 

Company Organization

 

State-Owned Enterprises (BUMN) Minister Erick Thohir has just appointed Claus Wamafma as a director at PT Freeport Indonesia. Alumni of the Bandung Institute of Technology (ITB) started a career at the gold mining company in the warehousing department.

Claus Wamafma was appointed by Erick Thohir as director of Freeport Indonesia,). Special Staff of the Ministry of BUMN Arya Sinulingga said that on the board of directors, Claus Wamafma was the representative of the Mind ID holding of mining SOEs in Freeport Indonesia.

President Director: richard 

Deputy President Director: Orias Petrus Moedak

Director: Jenpino Ngabdi

Director: Achmad Ardianto

Director: Robert Charles Schroeder

Director: Mark Jerome Johnson

Board of Commissioners

President Commissioner: Richard Carl Adkerson

Vice President Commissioner: Amin Sunaryadi

Commissioner: Budi Gunadi Sadikin

Commissioner: Hinsa Siburian

Commissioner: Quirk Kathleen Lynne

Commissioner: Adrianto Machribie

 

Product

For decades Freeport has mined minerals such as gold and copper in Papua Province. There are 6 mines that Freeport has worked on, and the largest producer of gold and copper is the Grasberg mine.Freeport Indonesia in Papua has recorded 6 mines. Among them are DMLZ, Grasberg open pit, DOZ, Big Gossan, Grasberg Block Cave and Tambang Kucing Liar.

Of the six mines, Grasberg Block Cave is the largest producer of copper and gold. The reserves in the Grasberg Block Cave are recorded at around 963 million metric tons with about 1.01% copper and a gold content of 0.72 grams per metric ton, then for silver it is recorded at 3.52 grams per metric tonThen the DMLZ mine is in second place with the amount 437 million metric tons with a copper content of 0.91%. Then for gold 0.75 grams per metric ton and silver 4.39 grams per metric ton.

After that the Tambang Kucing Liar was in third position, namely 360 million metric tons. With a copper amount of 1.25%. The total gold content in this mine reaches 1.07 grams per metric ton. Then for silver it is recorded at 6.48 per metric ton.There is also the DOZ mine which has reserves of 79 million metric tons. The copper content reaches 0.54% with gold 0.54 grams per metric ton and silver 0.76 grams per metric ton.Then the Big Gosaan mine was recorded to contain 58 million metric tons. Total copper reached 2.22%. Then gold is 0.93 grams per metric ton and silver is 13.18 grams per metric ton

 

Marketing Strategy

 

Richard acknowledged that the divestment process for Freeport shares took quite a long time and was complicated. However, he said, the most important thing was that his party received investment certainty in the form of an extension of operations until 2041, fiscal stability and regulations. The guarantee given by the government is expected to have a positive impact on Freeport's operations in Indonesia.

"Because the operation is now being carried out with the Government of Indonesia through Inalum, thus Indonesia will get greater financial benefits (with the nJPK scheme) than when it was still a work contract," said Richard.

Regarding the smelter construction which is part of the divestment agreement, said Richard, Freeport remains committed to completing its construction for the next five years. In the new smelter, Inalum will receive export rights for refined copper concentrate in the new smelter. Freeport plans to invest 2.3 billion US dollars for the construction of the smelter

Benefits for Indonesia The divestment of shares of IUPK holders is regulated in Government Regulation Number 1 of 2017 concerning the Implementation of Mineral and Coal Mining Business Activities In this regulation, foreign mining companies must divest shares of at least 51 percent to Indonesian participants since production in the 10th year. Freeport operations in Papua according to the contract of work will end in 2021.

 

fun fact

 

FunFact of PT Freeport Indonesia

1. PT Freeport is the biggest  mine in the world.

 Grasberg mine is the biggest gold mine in the world and the third biggest copper mine.

2. not processed in the country.

For decades Freeport has extracted gold and other minerals from the bowels of Papua. However, it turns out that the mining products are not processed domestically, but are exported.

3. Pt Freeport large area and lots of employees.

This modern mine with a single point control system is able to supervise a mining area of ​​10,000 hectares with a supporting area of ​​202 thousand hectares, including the Amamapare Port downstream of Timika. the workforce reaches 12,000 people.

4. Indonesia's 51 percent stake in Freeport. PT Inalum (Persero) officially bought a portion of the shares of PT Freeport Indonesia (PTFI). In this way, Indonesia's share ownership in PTFI increased from 9 percent to 51 percent.