Freeport Indonesia's Parent Company Stock Price Plummets 18% Amidst Turmoil

The dispute between PT Freeport Indonesia and the Indonesian government has triggered a fall in the share price of the American mining company, Freeport McMoran Inc. On February 22, 2017, Freeport McMoran's share price closed down 2.83 percent to US$0.1373 per share. This marks the sixth decline since February 14, 2017. As a result, throughout February 2017, the share price of PT Freeport Indonesia's parent company has fallen 17.53 percent from its January closing price of US$0.1665.

The Indonesian government has requested that PT Freeport Indonesia change its status from a contract of work holder to a holder of a special mining business license (IUPK). However, Freeport disagreed, leading the government to halt the export of its concentrate since January 2017. Freeport plans to file a lawsuit with an international arbitration body.

Finance Minister Sri Mulyani stated that Freeport's refusal of the government's offer will ultimately harm the company itself. To date, Freeport Indonesia cannot export its mining products because it has not received an export recommendation from the Ministry of Energy and Mineral Resources (ESDM). The government is only willing to issue an export recommendation for copper concentrate if PT Freeport Indonesia agrees to change its status to IUPK.