JAKARTA (TheInsiderStories) - After rumor circulating in the last 24 hours, Chappy Hakim finaly confirmed that he has tendered his resignation as President Director of PT Freeport Indonesia. He said in a statement that he made the decision for the best interest of Freeport Indonesia and his family.
The Insider Stories broke the story late Friday that Chappy Hakim has sent a letter to the Chairman of copper Freeport McMoRan, the parent company of Freeport Indonesia
One senior official in the government, who declined to be named, confirmed the resignation. He also did not give the reason of the resignation but recently Chappy has a problem with a member of parliament and asked Freeport to dismiss his position as a president director.
Chappy Hakim’s decision came as a surprise since he only held the decision three months ago. The largest mining company in Indonesia appointed Chappy as the new president in November 2016 to replaceMaroef Sjamsoeddin. Chappy is a former Chief of Air Force during 2002 and 2005.
Chappy said in a statement to media that he has decided to return to his early post as an adviser of Freeport Indonesia. His surprise decision came as Freeport and Indonesian government are still at odds about the terms and conditions of the Special Mining Permit (IUPK).
“Holding a post as President Director of PT Freeport Indonesia requires extraordinary commitment of time. I have decided that for the best interest of PT Freeport Indonesia and my family, I have resigned from duties as President Director and continues my support for the company as advisor,” Chappy Hakim said in a statement to media.
“It is an honor for me to hold the post as President Director of Freeport Indonesia and I pay full respect to the company and the company’s talented team members,” Chappy, former Head of Airforce Chief, said.
Freeport has objected to the terms and conditions of IUPK as it gives no long-term certainty to the investor. Freeport wants the tax scheme and other terms remain the same as under Contract of Works (CoW), while the government wants to change to terms and conditions under IUPK like others.
The government also is yet to extend its contract, while the company wants contract extension to be made earlier than two years. The company’s CoW contract will expire in 2021. The company wants contract extension decided earlier as it wants to make huge investment to conduct under ground mining.
CEO and President Freeport McMoRan Inc., Richard C Adkerson, appreciates Chappy works during his short tenure and contribution while holding the post as CEO of the company.
“We understand that this is a difficult decision for Mr. Chappy. We express our appreciation for his service and support to the company. We hope to continue to receive advice and inputs from him,” Richard said. (*)