Document:

EX-10.5

 Exhibit 10.5 

Execution version 

SHAREHOLDERS AGREEMENT 

dated as of 
 21 December
2018 
 among 
 PT FREEPORT
INDONESIA, 
 PT INDONESIA PAPUA METAL DAN MINERAL, 

FREEPORT-MCMORAN INC. 
 and

 PT INDONESIA ASAHAN ALUMINIUM (PERSERO) 
  

 TABLE OF CONTENTS 

 
  

 

							
	 	 	 	  	PAGE	 
	 1.
	 	DEFINITIONS; INTERPRETATION	  	 	4	 
	 2.
	 	THE COMPANY	  	 	15	 
	 3.
	 	MANAGEMENT OF THE COMPANY	  	 	18	 
	 4.
	 	BOARD OF COMMISSIONERS	  	 	19	 
	 5.
	 	BOARD OF DIRECTORS	  	 	24	 
	 6.
	 	OPERATING COMMITTEE	  	 	32	 
	 7.
	 	FINANCE COMMITTEE	  	 	36	 
	 8.
	 	SHAREHOLDER MATTERS	  	 	41	 
	 9.
	 	DEADLOCK	  	 	44	 
	 10.
	 	DIVIDEND POLICY AND FUNDING	  	 	47	 
	 11.
	 	RESTRICTIONS ON TRANSFER	  	 	51	 
	 12.
	 	IPO	  	 	54	 
	 13.
	 	DEVELOPMENT OF GRASBERG SMELTER	  	 	55	 
	 14.
	 	SALES AND MARKETING	  	 	55	 
	 15.
	 	SHAREHOLDERS’ ACTIVITIES OUTSIDE THE CONTRACT AREA	  	 	56	 
	 16.
	 	CONFIDENTIALITY	  	 	56	 
	 17.
	 	MISCELLANEOUS	  	 	57	 
	 SCHEDULE 1
	  	 	72	 
	 Adherence Agreement To Shareholders Agreement
	  	 	72	 
	 SCHEDULE 2

Long Term Investment Plan

SCHEDULE 3

Articles

SCHEDULE 4

Company Subsidiaries

SCHEDULE 5

Form of draft Annual Operating Plan and Annual Financial Plan

SCHEDULE 6

Dividend Policy

SCHEDULE 7

Operating Committee Authority

SCHEDULE 8
	  	 	73	 
	  	 	73	 
	  	 	74	 
	  	 	74	 
	  	 	121	 
	  	 	121	 
	  	 	129	 
	  	 	129	 
	  	 	130	 
	  	 	130	 
	  	 	133	 
	  	 	133	 
	  	 	134	 
	 Agreed form of Freeport Services Agreement(s) and Revolving Credit Note

SCHEDULE 9

Economics Replacement During the Initial Period
	  	 	134	 
	  	 	165	 
	  	 	165	 

 SHAREHOLDERS AGREEMENT 

SHAREHOLDERS AGREEMENT (this “Agreement”), dated as of 21 December 2018, among: 

 

	(1)	 PT Freeport Indonesia, a limited liability company established under the laws of the Republic of Indonesia with
its domicile at Plaza 89 Lt. 5, Jl. H.R. Rasuna Said Kay. X-7 No. 6, Jakarta 12940, Indonesia (the “Company”); 

 

	(2)	 PT Indonesia Papua Metal dan Mineral (formerly known as “PT Indocopper Investama”), a limited
liability company established under the laws of the Republic of Indonesia with its domicile at Plaza 89 Lt. 5, Jl. H.R. Rasuna Said Kay. X-7 No. 6, Jakarta 12940, Indonesia (“PTIPMM”);

  

	(3)	 Freeport-McMoRan Inc., a corporation established under the laws of Delaware, United States of America, with its
principal place of business at 333 North Central Avenue, Phoenix, Arizona (“Freeport Shareholder” and, together with any of its Affiliates that become Shareholders, “Freeport”); and 

 

	(4)	 PT Indonesia Asahan Aluminium (Persero), a limited liability company established under the laws of Indonesia
whose registered office is at the Energy Building, 19th Floor, SCBD – Lot 11A, Jl. Jend. Sudirman Kav 52-53, Jakarta, 12190 (“Inalum” and together with PTIPMM and their respective
Affiliates that become Shareholders, “Inalum Group”).  

 WITNESSETH: 

 

	(A)	 Inalum, PTIPMM, Freeport Shareholder and the Company (collectively, the “Parties” and each a
“Party”) desire to have a mutually beneficial, constructive and substantive long term partnership pursuant to which, as of the date hereof, the Inalum Group owns 51.236 percent (51.236%) of the Shares. 

 

	(B)	 The Shareholders acknowledge that the relationship between the Shareholders in respect of the Company shall
balance the shared objective of active participation from all Shareholders, where Inalum Group and Freeport manage the governance of the Company, and where Freeport will continue to manage the operations of the Company and Inalum Group will have an
appropriate and meaningful role in the operations of the Company, each in accordance with the principles set out in this Agreement. 

  

	(C)	 The Parties share an objective of high standards for corporate governance and social and environmental
responsibility in respect of the Company. 

  

	(D)	 The Parties desire to enter into this Agreement to govern certain of their rights, duties and obligations.

  
 3 

 NOW, THEREFORE, in consideration of the covenants and agreements contained herein, the Parties agree as
follows: 
  

	1.	 DEFINITIONS; INTERPRETATION 

 

	1.1	 Definitions 

(a) As used in this Agreement, the following terms have the following meanings: 

“Adherence Agreement” means an agreement substantially in the form set out at schedule 1. 

“Affiliate” means, with respect to any Person, any other Person directly or indirectly Controlling, Controlled by or under
common Control with such Person; provided that no security holder of the Company shall be deemed an Affiliate of the Company or any other security holder of the Company solely by reason of any investment in the Company or the existence or
exercise of any rights or obligations under this Agreement or the Ordinary Shares held by such security holder. 
 “Anti-Bribery and
Corruption Laws” means the applicable anti-bribery, anti-corruption, and anti-money laundering laws, rules, regulations, decrees, and/or official government orders of any governmental body of Indonesia, Singapore, and the United States,
including the United States Foreign Corrupt Practices Act of 1977, Republic of Indonesia Law No. 31 of 1999 regarding Eradication of Criminal Acts of Corruption, as amended by Law No. 20 of 2011, Singapore Prevention of Corruption Act, and
any other applicable legislation implementing either the United Nations Convention Against Corruption or the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions. 

“Applicable Law” means, with respect to any Person, any transnational, domestic or foreign federal, state or local law
(statutory, common equity or otherwise), constitution, treaty, convention, ordinance, code, rule, regulation, order, injunction, judgment, decree, ruling or other similar requirement enacted, adopted, promulgated or applied by a governmental
authority that is binding upon or applicable to such Person, as amended unless expressly specified otherwise. 
 “Articles”
means the Articles of Association of the Company, substantially in the form attached to this Agreement at schedule 3, as the same may be amended from time to time, and references in this Agreement to “Articles” is a reference to an
Article in the Articles. 
 “Authorisations” means: 

 

	 	(i)	 an authorisation, consent, declaration, exemption, notarisation or waiver, however it is described; and

  

	 	(ii)	 in relation to anything that could be prohibited or restricted by any Applicable Law if a Government Authority
acts in any way within a 

  
 4 

	 	
specified period, the expiry of that period without that action being taken. 

“Board of Commissioners” means the Board of Commissioners of the Company. 

“Board of Directors” means the Board of Directors of the Company. 

“Business Day” means any day except a Saturday, Sunday or other day on which commercial banks in New York, New York, United
States of America or Jakarta, Indonesia are authorized by Applicable Law to close. 
 “Close-down” means the permanent
ceasing of all operations of the Company and the Company Subsidiaries in the Contract Area. 
 “Company Subsidiaries” means
each Person Controlled by the Company. The details of each Company Subsidiary as of the date hereof, including the relevant shareholding in such Company Subsidiaries, are set out at schedule 4.  

“Confidential Information” means any information concerning the Company or any Company Subsidiary or the financial condition,
business, operations or prospects of the Company or any Company Subsidiary in the possession of or furnished to any Shareholder (including by virtue of its present or former right to designate a Director); provided that the term
“Confidential Information” does not include information that (i) is or becomes generally available to the public other than as a result of a disclosure by a Shareholder or its Representatives in violation of this Agreement or
(ii) with respect to a Shareholder, was available to such Shareholder on a non-confidential basis prior to its disclosure to such Shareholder or its Representatives by the Company. 

“Consumer Price Index” means the unadjusted Consumer Price Index for All Urban Workers, U.S. City Average, All Items,
1982—84 = 100, calculated and published by the United States Department of Labor, Bureau of Labor Statistics (provided that (i) if such index is ever rebased, the new base will be used with appropriating compensating adjustments to
the calculation of the Expenditure Adjustment Factor) and (ii) if such index is ever discontinued, the Parties will select an alternative index as the “Consumer Price Index” which reasonably approximates the initial index as it
existed on the date of this Agreement). 
 “Contract Area” means the area defined as such under the IUPK. 

“Control” (including, with correlative meanings, the terms “Controlling”, “Controlled by”
and “under common Control with”) means, as used with respect to any Person, (i) the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether
through the ownership of voting securities, by contract or otherwise; or (ii) the ability to appoint a majority of the board of directors or the board of commissioners or similar governing or management body or bodies of that Person; or
(iii) the holding of the 

  
 5 

 
voting rights and/or the ability to direct the voting rights of more than 50% of all the voting rights exercisable at general meetings of shareholders of that Person. 

“Deadlock Matter” means, in respect of: 
  

	 	(i)	 the Shareholders, a resolution which the Shareholders have failed to pass one time at a meeting of the
Shareholders held in accordance with this Agreement; 

  

	 	(ii)	 the Board of Commissioners: 

 

	 	(A)	 a resolution which the Board of Commissioners has failed to pass at one meeting of the Board of Commissioners
held in accordance with this Agreement due to an equal number of votes cast for and against the resolution; or 

  

	 	(B)	 all resolutions the subject of a meeting of the Board of Commissioners that has been dissolved in accordance
with Clause 4.8(c); 

  

	 	(iii)	 the Board of Directors: 

 

	 	(A)	 a resolution which the Board of Directors has failed to pass at one meeting of the Board of Directors held in
accordance with this Agreement due to an equal number of votes cast for and against the resolution; or 

  

	 	(B)	 all resolutions the subject of a meeting of the Board of Directors that has been dissolved in accordance with
Clause 5.9(c); 

  

	 	(iv)	 the Finance Committee, a matter which the Finance Committee has failed to pass at one meeting of the Finance
Committee held in accordance with this Agreement due to an equal number of votes cast for and against the matter; and 

  

	 	(v)	 the Operating Committee, a matter which the Operating Committee has failed to pass at one meeting of the
Operating Committee held in accordance with this Agreement due to an equal number of votes cast for and against the matter. 

“Director” means any director of the Company from time to time. 

“Dividend Policy” means the terms on which dividends will be distributed to the Shareholders, as set out in Clause 10.1. 

“EBITDA” means, with respect to any period, net income of the Company and the Company Subsidiaries for such period as
determined in accordance with Indonesian generally accepted accounting principles, plus, to the extent deducted in calculating such net income, interest expense, taxes, depreciation, amortization and all other

  
 6 

 
noncash charges of the Company and the Company Subsidiaries for such period. For purposes of this calculation, net income will be adjusted to exclude any extraordinary gains or losses and the
cumulative effect of any change in accounting principles. 
 “Emergency Situation” means an emergency situation
(including a significant fire, explosion, mine subsidence or collapse) that would unless remedied immediately cause or could reasonably be expected to result in: 
  

	 	(i)	 a significant environmental event; 

 

	 	(ii)	 loss of life or serious injury to any persons; or 

 

	 	(iii)	 serious property damage. 

“Force Majeure Event” means any circumstance or event beyond the reasonable control of a Party (or any person acting on its
behalf), including acts of God, storms, floods, riots, fires, earthquakes, sabotage, civil commotion or civil unrest, strikes, lockouts or other labor difficulties, interference by civil or military authorities, riots, insurrections or other
hostilities, embargoes, fuel or energy shortages, acts of governmental authorities (including bank closings and seizures), acts of war (declared or undeclared) or armed hostilities or other national or international calamities or one or more acts of
terrorism or failures or interruptions of networks or energy sources. 
 “Freeport Services Agreement” means the services
agreement substantially in the form set out on schedule 8, as it may be amended from time to time in accordance with this Agreement. 

“Government Authority” means any transnational, domestic or foreign federal, state or local governmental, regulatory or
administrative authority, department, court, agency or official, including any political subdivision thereof. 
 “Government
Official” means any Person qualifying as a public official or a “foreign official” under the laws of the Indonesia, Singapore, or any other Applicable Laws, including (i) a Person holding an official position, such as an
employee, officer, or director, with any government, or agency, department, or instrumentality thereof, including a state-owned or -controlled enterprise; (ii) any Person “acting in an official capacity,” such as a delegation of
authority, from a government, or agency, department, or instrumentality thereof, to carry out official responsibilities, including a specific project assignment; or (iii) an official of a public international organization such as the United
Nations, the World Bank, the International Monetary Fund, or a regional development bank. 
 “Grasberg Smelter” means a
smelting and refining facility along with a precious metals refinery to process minerals to be constructed in Indonesia by the Company or any of its Affiliates in accordance with the IUPK. 

  
 7 

 “Indonesian Company Law” means Law No. 40 of 2007 (of the Republic of
Indonesia) on Limited Liability Companies including any implementing regulation thereof (as may be amended and/or replaced from time to time). 

“Inflation Adjustment Factor” means the quotient obtained by dividing (i) the Consumer Price Index for the last completed
month preceding the completion of the relevant draft annual operating plan or annual financial plan by (ii) the Consumer Price Index for the month in which the LTIP was adopted. 

“Initial Period” has the meaning set forth at schedule 9. 

“Interest Coverage Ratio” means, as of any date, the ratio of: (a) EBITDA for the most recent four fiscal quarters ending
prior to such date to (b) the total interest expense of the Company and the Company Subsidiaries determined in accordance with Indonesian generally accepted accounting principles for such four fiscal quarters, plus capitalized interest
of the Company and the Company Subsidiaries for such four fiscal quarters. 
 “International Human Rights” means the
fundamental principles and standards that enable individuals everywhere to have freedom to live in dignity. All human rights are universal, interrelated, interdependent, and indivisible. International human rights include, the right to safe and
healthy working conditions, right to life, liberty, and security of person, right to health, right not to be subjected to forced and compulsory labor or child labor, right to freedom of association, etc. The full definition of International Human
Rights can be found within the 30 articles of the United Nations’ Universal Declaration of Human Rights (UDHR). 

“LIBOR” means, with respect to calculation of interest for any period, the London interbank offered rate as administered by
ICE Benchmark Administration (or any other Person that takes over the administration of such rate) for deposits in U.S. dollars for a 180-day period which appears on the Reuters screen LIBOR01 or LIBOR02 page
that displays such rate (or, in the event such rate does not appear on such Reuters page or screen, on the page or screen used by the administrative agent under the credit agreement of the ultimate parent company of Freeport to determine the rate
applicable to Eurodollar loans under such credit agreement or, if no such credit agreement is then in effect, on the page or screen mutually agreed by the Parties) at or about 11:00 a.m. London time two business days in London before the first day
of such period; provided that if LIBOR as so determined shall be less than zero, such rate shall be deemed to be zero for the purposes of this Agreement; provided, further, that, if two or more such offered rates are
indicated on such page, LIBOR shall be the rate that equals the arithmetic mean (expressed as a decimal fraction to five decimal places) of such offered rates, and provided further that if such interest period is not equal to any period shown
on such page, LIBOR shall be the rate determined by interpolation from the rates for the next longer and next shorter periods shown on such page, using the number of days as the basis for the interpolation, expressed as a decimal fraction to five
decimal places. If at any time 

  
 8 

 
LIBOR cannot be determined as set forth in the preceding sentence and such inability to determine LIBOR is not likely to be temporary, then (i) the rate shall be equal to the rate used by
the administrative agent under the credit agreement of the ultimate parent company of Freeport to determine the rate applicable to Eurodollar loans under such credit agreement or (ii) if no such credit agreement is then in effect, the Parties
shall negotiate in good faith to establish an alternate rate of interest to LIBOR that gives due consideration to the then prevailing market convention for determining a rate of interest for syndicated loans in the United States at such time and, in
each case, shall enter into an amendment to this Agreement to reflect such alternate rate of interest and such other related changes to this Agreement as may be applicable. 

“Long Term Investment Plan” or “LTIP” means the plan attached to this Agreement at schedule 2, as amended
from time to time and approved in accordance with this Agreement (it being understood that such plan reflects alternative options with respect to the development of Kucing Liar, and the “LTIP” shall be the plan reflecting the option that
the Company follows with respect to Kucing Liar). 
 “Majority” means in respect of voting at a meeting of the Shareholders,
the Board of Commissioners, the Board of Directors, the Operating Committee, the Finance Committee or any other committee or other body of the Company contemplated under this Agreement, a matter passed by more than 50% of the votes cast by members
entitled to vote on the matter. 
 “Material Adverse Effect” means a material adverse effect on the financial condition,
business, assets or results of operations of the Company and the Company Subsidiaries, taken as a whole, excluding any effect resulting from (A) changes in Indonesian generally accepted accounting principles or changes in the regulatory
accounting requirements applicable to any industry in which the Company and the Company Subsidiaries operate, (B) changes in the general economic or political conditions or (C) changes (including changes of Applicable Law and price changes
with respect to copper or gold) or conditions generally affecting the industry in which the Company and the Company Subsidiaries operate. 

“Mining Information” means all information, data (including electronically stored data), sketches, maps, drawings, memoranda,
drill cores, logs of those drill cores and records relating to exploration (including without limitation, expenditure records, statutory reports and correspondence with third parties in relation to any Authorisations) including geological,
geophysical, geochemical, aerial, exploration, mining, sampling and assay reports and notes and other technical information developed by or on behalf of the Company or any Company Subsidiary. 

“Nominating Committee” means a four person committee, comprised of (i) the Chief Executive Officer of Inalum (who will
serve as Co-Chairman of such committee); (ii) nominee of the Chief Executive Officer of Inalum; (iii) the Chief Executive Officer of the ultimate parent company of Freeport (who will serve as Co-

  
 9 

 
Chairman of such committee); and (iv) nominee of the Chief Executive Officer of the ultimate parent company of Freeport. 

“Non-Discretionary Actions” means an action that is required to be taken immediately
to prevent an Emergency Situation, including (i) actions taken as a result of a Force Majeure Event, (ii) actions relating to environmental, safety, health or security or that arise necessarily out of compliance with Applicable Laws, or
(iii) actions, such as cost and capital reductions, which are taken as a result of the impact of changes in commodity prices, in each case to the extent such actions are taken acting in the best interest of the Company. 

“NPV” means the present value of future cash flows discounted at a rate of 8%, adjusted for any value that has been realized
prior to the time the NPV is calculated. For purposes of calculating NPV, effects caused by the following matters will be excluded: (i) changes in commodity prices, (ii) currency fluctuations, (iii) regulatory requirements or changes
in Applicable Law and (iv) cash flows relating to smelter activities. 
 “Ordinary Shares” means the ordinary shares of
the Company, having par value US$100 and any other security into which such shares may hereafter be converted or changed. 

“Percentage Interest” means, with respect to any Shareholder or group of Shareholders at any time, a fraction (expressed as a
percentage), (i) the numerator of which is the total number of Ordinary Shares owned by such Shareholder or group of Shareholders as of such time, and (ii) the denominator of which is the total number of outstanding Ordinary Shares as of such
time. 
 “Person” means an individual, corporation, limited liability company, partnership, association, trust or other
entity or organization, including a government or political subdivision or an agency or instrumentality thereof. 
 “Person of
Concern” means (i) a Government Official; (ii) a political party, an official of a political party (including any member of an advisory council or executive council of a political party), or a candidate for political office;
(iii) an immediate family member, such as a parent, spouse, sibling, or child of a Person in either of categories (i) and (ii) above; or (iv) an agent, intermediary, or close business associate of any Person in any of the foregoing
categories. 
 “Qualifying Mining Company” means any Person which is an international mining company which has: 

 

	 	(i)	 extensive experience and skills in relation to; and 

 

	 	(ii)	 owns or operates (or has recently owned or operated), 

substantial underground mining operations. 

  
 10 

 “Representatives” means, with respect to any Shareholder, such
Shareholder’s, Controlled Affiliates and its and their respective directors, officers, employees, stockholders, members, partners, agents, counsel, professional advisers (including tax advisors and auditors) or other representatives. 

“Shareholder” means, at any time, any Person (other than the Company) who shall then be a party to or bound by this Agreement,
so long as such Person owns any Ordinary Shares at such time. 
 “Shareholder Representative” means a representative of a
Shareholder appointed to the Board of Directors, the Board of Commissioners, the Operating Committee, the Finance Committee or any other committee of the Company (as relevant) by such Shareholder pursuant to a right in this Agreement. For the
avoidance of doubt, a Shareholder may nominate the same person to be its Shareholder Representative on the Board of Directors and any committee (including the Operating Committee and the Finance Committee). 

“Shares” means any shares in the capital of the Company including Ordinary Shares. 

“Significant Deviation” means: 
  

	 	(i)	 during the Initial Period, a deviation from the LTIP resulting in a Material Adverse Effect; and

  

	 	(ii)	 after the Initial Period: 

 

	 	(A)	 a deviation from the LTIP that would reasonably be expected to result in a 10% or greater reduction in NPV
relative to the NPV shown in the LTIP (with, for the purpose of such calculation, the revenues and expenditures set forth in the LTIP for periods not yet completed multiplied by the Inflation Adjustment Factor); 

 

	 	(B)	 a deviation from the LTIP requiring capital calls from the Shareholders in respect of projects that are not
included in the LTIP, other than capital calls caused by any change in commodity prices, regulatory requirements, any change in Applicable Law or any Force Majeure Event; or 

 

	 	(C)	 a deviation from the LTIP resulting in the aggregate amount of capital and operating expenditures for any year
increasing by more than 20% relative to the aggregate amount of such expenditures for such year set forth in the LTIP multiplied by the Inflation Adjustment Factor, other than increases in such expenditures caused by (1) changes in
commodity prices, (2) currency fluctuations, (3) regulatory requirements or changes in Applicable Law, and (4) smelter activities. 

  
 11 

 “Transfer” means, with respect to any Ordinary Shares, (i) when used
as a verb, to sell, assign, dispose of, exchange, pledge, encumber, hypothecate or otherwise transfer such Ordinary Shares or any participation or interest therein, whether directly or indirectly (including pursuant to a derivative transaction), or
agree or commit to do any of the foregoing and (ii) when used as a noun, a direct or indirect sale, assignment, disposition, exchange, pledge, encumbrance, hypothecation, or other transfer of such Ordinary Shares or any participation or
interest therein or any agreement or commitment to do any of the foregoing. For the avoidance of doubt, the term “Transfer” includes (A) a direct or indirect sale, assignment, disposition, exchange, pledge, encumbrance,
hypothecation, or other transfer however structured (whether pursuant to merger, consolidation, business combination or other similar transactions or by operation of law) and (B) a direct or indirect sale, assignment, disposition, exchange,
pledge, encumbrance, hypothecation, or other transfer of any equity interests of a Shareholder or any direct or indirect parent company of such Shareholder or any participation or interest therein, but excludes (1) any such sale, assignment,
disposition, exchange, pledge, encumbrance, hypothecation, or other transfer of equity interests in any publicly-traded ultimate parent company of any Shareholder, (2) any spin-off, split-off or similar transaction of or by any Shareholder or any direct or indirect parent company of such Shareholder and (3) any direct or indirect sale or issuance of any equity interests of any direct or
indirect parent company of any Shareholder if, after giving effect to such sale or issuance, an Affiliate of such Shareholder remains in Control of such direct or indirect parent company. 

“Ultimate Deadlock Resolutions” means the deadlock resolutions set out in Clause 9.3. 

(b) Each of the following terms is defined in the Clause set forth opposite such term, or otherwise in the Preamble or Recitals (as set forth
below): 
  

			
	 Term
	  	 Clause

	Agreement	  	Preamble
	Annual Financial Plan	  	7.1(f)(i)
	Annual Financial Plan	  	7.1(f)(i)
	Annual Operating Plan	  	6.1(e)(i)
	Arbitration Law	  	17.17
	Company	  	Preamble
	Company Objectives	  	2.2(a)
	Corporate Policies	  	17.2(a)
	Deadlock Appointees	  	9.1(a)
	Deadlock Notice	  	9.1(a)
	Defaulter	  	17.15(a)
	Disqualifying Action	  	5.4(a)
	Finance Committee	  	7.1(a)
	Finance Committee Special Meeting	  	7.2(b)

  
 12 

			
	 Term
	  	 Clause

	Freeport	  	Preamble
	Freeport Shareholder	  	Preamble
	ICMM	  	5.15(b)(ii)
	Inalum	  	Preamble
	Inalum Group	  	Preamble
	Incoming Shareholder	  	11.1(b)
	Indemnified Liabilities	  	17.1(a)
	Indemnified Parties	  	17.1(a)
	IPO	  	12.1(a)
	IUPK	  	8.3(f)(vi)
	Non-transferring Shareholder	  	11.2(a)
	Offer	  	11.2(c)
	Offer Period	  	11.2(d)
	Operating Committee	  	6.1(a)
	Operating Committee Special Meeting	  	6.3(b)
	Parties	  	Recital
(A)
	PTIPMM	  	Preamble
	Relevant Deadlock Matter	  	9.1(a)
	Remedy Period	  	17.15(c)
	Replacement Commissioner Nominee	  	4.5(a)
	Replacement Director Nominee	  	5.5(d)(i)
	Reserved Matter	  	8.3(f)
	Rules	  	17.17
	Shareholder Designation Procedure	  	5.5
	Shareholder Loans	  	10.3
	SIAC	  	17.17
	Supplementary Information	  	10.10
	Transfer Acceptance Notice	  	11.2(d)
	Transfer Notice	  	11.2(a)
	Transfer Price	  	11.2(a)(ii)
	Transfer Shares	  	11.2(a)
	Transferor	  	11.2(a)

  

	1.2	 Other Definitional and Interpretative Provisions 

The following rules apply in interpreting this Agreement. 
  

	 	(a)	 The words “hereof”, “herein” and “hereunder” and words of like import used in
this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement. 

  

	 	(b)	 The captions and headings used herein are included for convenience of reference only and shall be ignored in
the construction or interpretation hereof. 

  
 13 

	 	(c)	 References to Clauses and schedules are to Clauses of, and schedules to, this Agreement unless otherwise
specified. 

  

	 	(d)	 All schedules annexed hereto or referred to herein are hereby incorporated in and made a part of this Agreement
as if set forth in full herein. 

  

	 	(e)	 Any capitalized terms used in any schedule but not otherwise defined therein, shall have the meaning as defined
in this Agreement. 

  

	 	(f)	 If a word or phrase is defined, any other grammatical form of that word or phrase has a corresponding meaning.

  

	 	(g)	 Any singular term in this Agreement shall be deemed to include the plural, and any plural term the singular.

  

	 	(h)	 Whenever the words “include”, “includes” or “including” are used in this
Agreement, they shall be deemed to be followed by the words “without limitation”, whether or not they are in fact followed by those words or words of like import. 

 

	 	(i)	 If an example is given of anything (including a right, obligation or concept), such as by saying it includes
something else, the example does not limit the scope of that thing. 

  

	 	(j)	 Anything (including a right, obligation or concept) includes each part of it. 

 

	 	(k)	 “Writing”, “written” and comparable terms refer to printing, typing and other means of
reproducing words (including electronic media) in a visible form. 

  

	 	(l)	 A reference to “US$” is to an amount in the currency of the United States of America.

  

	 	(m)	 A reference to time is to local time in Jakarta, Indonesia, unless otherwise specified. 

 

	 	(n)	 References to any document, agreement or contract are to that document, agreement or contract as amended,
modified, replaced, novated or supplemented from time to time in accordance with the terms hereof and thereof. 

  

	 	(o)	 References to any statute shall be deemed to refer to such statute as amended,
re-enacted or replaced from time to time and to any rules or regulations promulgated thereunder. 

  

	 	(p)	 References to any Person or party to this Agreement or any other document include the successors and permitted
assigns of that Person or party. 

  

	 	(q)	 References from or through any date mean, unless otherwise specified, from and including or through and
including, respectively. 

  
 14 

	 	(r)	 A word which suggests one gender includes the other genders. 

 

	 	(s)	 The word “agreement” includes an undertaking or other binding arrangement or understanding, whether
or not in writing. 

  

	 	(t)	 This Agreement is not to be interpreted against the interests of a Party merely because that Party proposed
this Agreement or some version of it or because that Party relies on a provision of this Agreement to protect itself. 

  

	1.3	 Best Interests 

In addition to the requirements of any Applicable Law, where a commissioner, Director, member of the Nominating Committee, member of the
Operating Committee, member of the Finance Committee, or member of any other committee of the Company is required to act in the best interests of the Company pursuant to this Agreement, then the commissioner, Director, member of the Nominating
Committee, member of the Operating Committee, member of the Finance Committee or member of any other committee of the Company will be taken to meet such requirements if they: 
  

	 	(a)	 make any judgment they are required to make in good faith, acting with prudence and full responsibility in
accordance with proper policy; 

  

	 	(b)	 do not have a material personal interest in the subject matter of any judgment they are required to make (other
than by reason of any employment or other relationship between any commissioner, Director, member of the Nominating Committee, member of the Operating Committee, member of the Finance Committee, or member of any other committee of the Company, on
the one hand, and any Shareholder or Affiliate of a Shareholder, on the other hand, in which case, they have disclosed their material personal interest to the Company and they exercise their judgement in a manner that is consistent with a person who
is exercising their judgement without having a material personal interest); and 

  

	 	(c)	 inform themselves about the subject matter of any judgment they are required to make (including ways to avoid
any negative impacts) to the extent that they believe to be appropriate; and rationally believe that any judgment they are required to make is in the best interests of the Company unless the belief is one that no reasonable person in their position
would hold. 

  

	2.	 THE COMPANY 

  

	2.1	 Initial Percentages Interests 

As at the date of this Agreement, the Percentage Interest of each Shareholder is as follows: 

 

									
	   (a)
	  	 Freeport:
	  	 48.764%
	  		  	

  
 15 

									
					
	   (b)
	  	 Inalum:
	  	 26.236%
	  		  	
					
	   (c)
	  	 PTIPMM:
	  	 25.000%
	  		  	

  

	2.2	 Company Objectives 

 

	 	(a)	 Each Shareholder acknowledges and agrees that the objectives of the Company as of the date hereof are to:

  

	 	(i)	 (Operations) carry on and develop the operations of the Company in accordance with the LTIP, the Annual
Operating Plan and Annual Financial Plan for the benefit of the Shareholders in accordance with the IUPK; 

  

	 	(ii)	 (Grasberg Assets) develop and exploit, for the benefit of the Shareholders, the assets of the Company
and the Company Subsidiaries to produce and sell product and to declare dividends in accordance with the Dividend Policy (and schedule 9); 

  

	 	(iii)	 (Shareholder value) maximise the value of the operations of the Company and distribute dividends in
accordance with the Dividend Policy (and schedule 9); and 

  

	 	(iv)	 (other) conduct any other activity agreed unanimously by the Shareholders and undertaken by the Company
or any of the Company Subsidiaries, 

 together, the “Company Objectives”. 

 

	 	(b)	 Clause 2.2(a) is not a limitation on the capacity of the Company. 

 

	 	(c)	 In order to fulfil the Company Objectives: 

 

	 	(i)	 each Shareholder must cooperate with each other; and 

 

	 	(ii)	 unless this document expressly provides otherwise, a Shareholder must not unreasonably take, give or delay
taking or giving any action, or making or giving any approval, direction, determination, agreement, consent or decision referred to in, or required under this Agreement. 

 

	 	(d)	 The Company must conduct (and each Shareholder must use reasonable endeavours to procure that the Company
conducts) its activities in a manner that is consistent with this Agreement, the LTIP, the Annual Operating Plan and the Annual Financial Plan during the periods in which they apply (after giving effect to any amendments thereto or deviations
therefrom to the extent permitted by the terms of this Agreement) and the Company shall procure that each Company Subsidiary does the same. 

  
 16 

	 	(e)	 The Company will endeavour: 

 

	 	(i)	 to preserve and keep the IUPK and any other Authorisations held in respect of the Contract Area in full force
and effect; 

  

	 	(ii)	 at all times to conduct operations of the Company in a manner consistent with good and acceptable international
mining engineering standards and practices as are economically and technically feasible, and in accordance with modern and accepted scientific and technical principles and comply with and cause to be complied with all Applicable Laws (including
those that apply to the environment and community development), the violation of which would have a materially adverse effect on the operations of the Company, the Company and/or the Company Subsidiaries; and 

 

	 	(iii)	 where possible, to conduct operations of the Company in a manner consistent with good and acceptable
international standards and practices in relation to environmental management and community relations. 

  

	 	(f)	 The Company shall promptly notify each Shareholder of all matters it is aware of which may materially adversely
affect the operations of the Company and/or the assets of the Company and the Company Subsidiaries, including notifications, orders, demands and other communications received from any Government Authority, and any notice of default, lawsuit,
proceeding, action or damage. 

  

	2.3	 Articles 

  

	 	(a)	 Without affecting the scope and intent of Clause 17.20: 

 

	 	(i)	 this Agreement and the Articles are to be read together as component parts of a single arrangement; and

  

	 	(ii)	 if there is any inconsistency between the provisions of this Agreement and the provisions of the Articles:

  

	 	(A)	 the provisions of this Agreement will prevail to the extent of any inconsistency and the Articles must be read
and construed accordingly; and 

  

	 	(B)	 as soon as practicable after the Shareholders become aware of any inconsistency, the Shareholders will take all
steps reasonably necessary to amend the Articles to remove the inconsistency and to ensure the provisions of this Agreement prevail. 

  

	 	(b)	 If it is necessary for any provision of this Agreement to be included in the Articles in order for such
provision to be effective in accordance with its terms, the 

  
 17 

	 	
Shareholders shall cause the Articles to be amended to give effect to such provision. 

  

	 	(c)	 Each Shareholder undertakes with each other Shareholder and the Company to: 

 

	 	(i)	 exercise all its votes, powers and rights under the Articles so as to give full force and effect to the
provisions of this Agreement; 

  

	 	(ii)	 subject to this Clause 2.3, observe and comply fully and promptly with the provisions of the Articles with the
intent and to the effect that each and every provision of them is enforceable by the Parties inter se; and 

  

	 	(iii)	 exercise all its votes, powers and rights in relation to the Company so as to ensure that the Company fully and
promptly observes, complies with and gives effect to the requirements of this Agreement and the Articles. 

  

	 	(d)	 The Company must do all things necessary or desirable to give effect to the provisions of this Agreement in
accordance with its terms and is bound by all provisions of this Agreement which expressly or by implication apply to the Company. 

  

	2.4	 Acting in the Best Interests of the Company 

Each member of each of the Board of Commissioners, the Board of Directors, the Operating Committee, the Finance Committee, and all other
committees of the Company established pursuant to this Agreement (in their capacity as such a member) will, at all times and in accordance with Applicable Law, act in the best interests of the Company. 

 

	3.	 MANAGEMENT OF THE COMPANY 

 

	3.1	 Management Vests in the Board 

 

	 	(a)	 Management of the Company vests in the Board of Directors, as supervised by the Board of Commissioners to the
extent required by Indonesian Company Law. 

  

	 	(b)	 The Board of Directors may delegate its functions to the fullest extent permitted by Applicable Law and,
subject to Applicable Laws, the Shareholders shall exercise all their votes, powers and rights in relation to the Company to procure that the Board of Directors delegates those functions required to be delegated in accordance with this Agreement.

  

	3.2	 Shareholders Obligations 

 

	 	(a)	 Subject to Clause 3.2(b), and except as this Agreement otherwise provides, no Shareholder in its capacity as
such may interfere with the management of the Company nor has the authority to give directions to any officers or employees of the Company. 

  
 18 

	 	(b)	 Nothing in this Clause 3.2 restricts the ability of a Shareholder to nominate directors to the Board of
Directors, commissioners to the Board of Commissioners or Shareholder Representatives to the Operating Committee or the Finance Committee or to grant or withhold its consent or vote at a Shareholders’ meeting. 

 

	 	(c)	 Each Shareholder agrees that: 

 

	 	(i)	 a Shareholder may act in the interests of that Shareholder in performing any of its duties or exercising any
power, right or discretion as a Shareholder; and 

  

	 	(ii)	 entry into this agreement does not give rise to a fiduciary duty towards any other Shareholder.

  

	 	(d)	 Each Shareholder shall promptly notify the other Shareholders and the Company of all matters it is aware of
which may materially adversely affect the operations of the Company and/or the assets of the Company and the Company Subsidiaries. 

  

	4.	 BOARD OF COMMISSIONERS 

 

	4.1	 Purpose 

The Board of Commissioners is responsible for supervising the activities and management of the Company by the Board of Directors to the extent
required by Applicable Laws and the Articles. 
  

	4.2	 Number of Commissioners and Designation Rights 

 

	 	(a)	 The Board of Commissioners shall consist of six (6) commissioners, of whom: 

 

	 	(i)	 three (3) shall be nominated by Freeport; and 

 

	 	(ii)	 three (3) shall be nominated by Inalum Group. 

 

	 	(b)	 The Board of Commissioners will: 

 

	 	(i)	 for the first period of five years from the date of this Agreement, and for each subsequent alternate period of
five years, include a President Commissioner who will be a nominee of Freeport and a Vice President Commissioner who will be a nominee of the Inalum Group; and 

 

	 	(ii)	 for the second period of five years from the date of this Agreement, and each subsequent alternate period of
five years, include a President Commissioner who will be a nominee of the Inalum Group and a Vice President Commissioner who will be a nominee of Freeport. 

  
 19 

	 	(c)	 Each Shareholder agrees that, if at any time it is then entitled to vote for the appointment of commissioners
to the Board of Commissioners, it shall vote all of its Ordinary Shares or execute proxies or written consents, as the case may be, and take all other necessary action (including causing the Company to call a general meeting of Shareholders) in
order to ensure that the candidates nominated in accordance with Clause 4.2(a) are appointed to the Board of Commissioners in the positions to which they were nominated in accordance with Clause 4.2(a) (including the positions specified in Clause
4.2(b)). If Applicable Law should prevent or disqualify any nominated candidate from being appointed to the Board of Commissioners, the Person or Persons entitled to nominate the candidate under Clause 4.2(a) shall be entitled to nominate the
replacement candidate. The Company shall use its best efforts to cause the candidates nominated by each Shareholder in accordance with this Clause 4.2 to be appointed to the Board of Commissioners. 

 

	4.3	 Term of Appointment 

Each member of the Board of Commissioners shall be appointed for a term of five (5) years. 

 

	4.4	 Removal 

Each Shareholder agrees that, if at any time it is then entitled to vote for the removal of commissioners from the Board of Commissioners, it
shall not vote any of its Ordinary Shares or execute proxies or written consents, as the case may be, in favor of the removal of any commissioner who shall have been nominated pursuant to Clause 4.2, unless the Person or Persons entitled to nominate
such commissioner pursuant to Clause 4.2 shall have consented to such removal in writing; provided that, if the Person or Persons entitled to nominate any commissioner pursuant to Clause 4.2 shall request in writing the removal of such
commissioner, each Shareholder shall vote all of its Ordinary Shares or execute proxies or written consents, as the case may be, and take all other necessary action (including causing the Company to call a general meeting of Shareholders) in order
to ensure such commissioner is removed. 
  

	4.5	 Vacancies 

If, as a result of death, disability, retirement, resignation, removal or otherwise, there shall exist or occur any vacancy on the Board of
Commissioners: 
  

	 	(a)	 the Person or Persons entitled under Clause 4.2(a) to nominate such commissioner whose death, disability,
retirement, resignation or removal resulted in such vacancy, shall have the exclusive right to nominate another individual (such person, the “Replacement Commissioner Nominee”) to fill such vacancy and serve as a commissioner on the
Board of Commissioners; 

  
 20 

	 	(b)	 each Replacement Commissioner Nominee shall be appointed for the remaining term of the commissioner being
replaced by such Replacement Commissioner Nominee; and 

  

	 	(c)	 each Shareholder agrees that if it is then entitled to vote for the election of commissioners to the Board of
Commissioners, it shall vote all of its Ordinary Shares, or execute proxies or written consents, as the case may be, and take all other necessary action (including causing the Company to call a general meeting of Shareholders) in order to ensure
that the Replacement Commissioner Nominee is appointed to the Board of Commissioners as soon as practicable following the nomination of such Replacement Commissioner Nominee and, in any event, prior to the taking of any other action of the Board of
Commissioners. 

  

	4.6	 Meetings 

  

	 	(a)	 The Board of Commissioners shall hold a regularly scheduled meeting at least quarterly (unless the Board of
Commissioners decides on different timing), and at such other times as the President Commissioner may request. The Company shall pay all reasonable out-of-pocket
expenses incurred by each commissioner in connection with attending meetings of the Board of Commissioners, meetings of any committee of the Board of Commissioners of which the relevant commissioner is a member and any general meeting of
Shareholders. 

  

	 	(b)	 To the extent Applicable Laws allow, at the request of the Board of Commissioners, the Board of Commissioners
may hold meetings at the same time and at the same place as the meetings held by the Board of Directors in accordance with this Agreement. 

  

	 	(c)	 Members of the Board of Commissioners may participate in a meeting of the Board of Commissioners or any
committee thereof, by means of a conference telephone or similar communications equipment by means of which all Persons participating in the meeting can hear one another, and such participation shall constitute the presence of such commissioner for
purposes of determining whether a quorum has been met. 

  

	 	(d)	 Meetings of the Board of Commissioners shall be chaired by the President Commissioner or, if the President
Commissioner is not present or prevented from attending, the Vice President Commissioner. If both the President Commissioner and Vice President Commissioner are not present or prevented from attending, the meeting shall be chaired by a person
elected by and from the commissioners present. The chair of a meeting of the Board of Commissioners may vote in his or her own right but does not have a casting vote. 

  
 21 

	4.7	 Notice of Meetings 

Notice of a meeting of the Board of Commissioners or any committee thereof stating the place, date and hour of the meeting and the agenda for
which the meeting is called shall be given to each commissioner by telephone, electronic mail or facsimile no less than five Business Days before the date of the meeting unless otherwise agreed by all of the commissioners. Presence at the meeting
shall constitute waiver of any deficiency of notice, except when such commissioner attends the meeting for the express purpose of objecting, at the beginning of the meeting, to the transaction of any business because the meeting is not called or
convened in accordance with this Agreement. 
  

	4.8	 Quorum 

  

	 	(a)	 A quorum of the Board of Commissioners shall consist of a majority of the total number of commissioners,
however no meeting of the Board of Commissioners shall be considered to have a quorum unless at least one commissioner nominated by each of Freeport (for as long as Freeport holds at least 25% of the outstanding Ordinary Shares) and Inalum Group
(for as long as Inalum Group holds at least 25% of the outstanding Ordinary Shares) is in attendance. 

  

	 	(b)	 If a quorum is not present within 30 minutes from the scheduled start of a meeting: 

 

	 	(i)	 the meeting is adjourned for a minimum of 24 hours after the time appointed for the original meeting, however
the day for the adjourned meeting must be a Business Day; and 

  

	 	(ii)	 the quorum and the place of the adjourned meeting is otherwise the same as for the original meeting.

  

	 	(c)	 If a quorum is not present within 30 minutes from the scheduled start of the adjourned meeting, the meeting is
dissolved. 

  

	 	(d)	 The only matters that may be considered at the adjourned meeting are matters which were included in the notice
provided in relation to the original meeting under Clause 4.7. 

  

	4.9	 Voting 

  

	 	(a)	 Subject to Clause 4.9(b), actions of the Board of Commissioners are adopted by the affirmative Majority vote of
the Board of Commissioners at a duly convened meeting of the Board of Commissioners at which a quorum is present. 

  

	 	(b)	 Each member of the Board of Commissioners shall vote in accordance with the decision of the Shareholders in
relation to the matters set out in Clause 8.3(f), 

  
 22 

	 	
and take all actions necessary to give effect to any affirmative vote of the Shareholders under Clause 8.3(f). 

 

	 	(c)	 Each commissioner on the Board of Commissioners shall have one vote; provided that a Shareholder Representative
on the Board of Commissioners shall also be entitled to cast votes on behalf of any other Shareholder Representative on the Board of Commissioners nominated by the same Shareholder(s), that is not in attendance at any meeting by virtue of a power of
attorney. 

  

	 	(d)	 Notwithstanding this Clause 4, on any matter requiring an approval or consent of the Board of Commissioners,
the Board of Commissioners or any committee thereof may take such action without a meeting, without notice and without a vote if a consent or consents in writing, setting forth the action to be taken, shall be signed by all of the members of the
Board of Commissioners (or in the case of a committee of the Board of Commissioners, all of the members of such committee). 

  

	4.10	 Deadlock Matters 

In the event a Deadlock Matter in respect of the Board of Commissioners occurs, Clause 9 shall apply. 

 

	4.11	 Minutes of Meetings 

Minutes of the meetings of the Board of Commissioners shall be drawn up by a person present at the meeting designated by the chairman of the
meeting and shall be signed by all members of the Board of Commissioners present at the meeting to verify the completeness and accuracy of the minutes. Minutes of a meeting made and signed shall serve as conclusive evidence concerning the
resolutions adopted at the meeting concerned. If such minutes are drawn up by a notary, members’ signatures shall not be required. A copy of or excerpt from the minutes of meeting of the Board of Commissioners shall be deemed a legal copy or
excerpt if it is stated to be a true copy or excerpt and is signed by all members of the Board of Commissioners or if it is issued by the notary who has drawn up the minutes concerned. 

 

	4.12	 Language 

  

	 	(a)	 Meetings of the Board of Commissioners shall be conducted in the English language provided that if a member of
the Board of Commissioners is not comfortable with the English language such member shall be entitled, at the cost of the Company, to use the services of an interpreter at such meetings. 

 

	 	(b)	 All notices of meeting and papers to be considered at any meeting of the Board of Commissioners shall be
accompanied by an English translation thereof, as shall any other papers that any member of the Board of Commissioners may reasonably request prior to the meeting. 

  
 23 

	 	(c)	 The draft minutes (subject to approval at the next meeting) of any such meetings shall be provided to the
members of the Board of Commissioners in English and in Indonesian within a reasonable time period after such meeting (and in any event by no later than the date on which the agenda and board papers for the next following meeting are due to be
circulated); in the event of any inconsistency between the English and Indonesian texts, the English text shall prevail. 

  

	4.13	 Other Actions Taken by the Board of Commissioners 

 

	 	(a)	 In addition to the committees expressly provided for in this Agreement, the Board of Commissioners may create
additional committees as it may determine. 

  

	 	(b)	 Subject to acting in the best interests of the Company and complying with all Applicable Laws, the Board of
Commissioners (and each individual Commissioner making up the Board of Commissioners) must take steps to implement, and may not act inconsistently with the LTIP, the Annual Operating Plan and Annual Financial Plan (after giving effect to any
amendments thereto or deviations therefrom to the extent permitted by the terms of this Agreement). 

  

	 	(c)	 The Company shall not terminate the Freeport Services Agreement without the approval of the Board of
Commissioners; provided that if any member of the Board of Commissioners recuses himself or herself or is disqualified from participating in the decision of whether to terminate the Freeport Services Agreement, then the termination of the
Freeport Services Agreement will be deemed a Reserve Matter (and accordingly subject to Section 8.3(e)(iv)). 

  

	5.	 BOARD OF DIRECTORS 

 

	5.1	 Purpose 

The Board of Directors is responsible for overall management of the Company and must act in the Company’s best interests and in accordance
with the Company’s purpose and objectives. 
  

	5.2	 Number of Directors 

 

	 	(a)	 The Board of Directors will be constituted by a maximum of six (6) Directors, subject to Clause 5.5.

  

	 	(b)	 The initial members of the Board of Directors (which will be appointed with effect on and from the date of this
Agreement) shall be: 

  

	 	(i)	 Clayton Allen Wenas (Tony Wenas); 

 

	 	(ii)	 Orias Petrus Moedak; 

  
 24 

	 	(iii)	 Jenpino Ngabdi; 

  

	 	(iv)	 Achmad Ardianto; 

  

	 	(v)	 Robert Charles Schroeder; and 

 

	 	(vi)	 Mark Jerome Johnson. 

 

	5.3	 Term of Appointment 

Each Director shall be appointed for a period of five (5) years. 
  

	5.4	 Removal 

  

	 	(a)	 Subject to Clause 5.4(d), each Shareholder agrees that, if at any time it is then entitled at a general meeting
of Shareholders to vote for the removal of any Director, it shall not vote any of its Ordinary Shares or execute proxies or written consents, as the case may be, in favour of the removal of any Director, unless such Director fails to (each, a
“Disqualifying Action”): 

  

	 	(i)	 take action to carry out, or takes any action contrary to, the LTIP or the Annual Operating Plan (after giving
effect to any amendments thereto or deviations therefrom to the extent permitted by the terms of this Agreement); 

  

	 	(ii)	 approve a dividend that is in accordance with the Dividend Policy or schedule 9; or 

 

	 	(iii)	 comply with the Articles (including any of the Corporate Policies), this Agreement or Applicable Laws,

 in which case such Director may be removed only pursuant to the procedures set forth in Clause 5.4(b) or 5.4(c), as
applicable. 
  

	 	(b)	 If, prior to the end of the Initial Period, Freeport determines (acting reasonably) that any Director has
committed a Disqualifying Action, Freeport may notify the Inalum Group of the Disqualifying Action, in which case Inalum Group will act expeditiously and vote in favor of the removal of such Director. Any Director so removed will be replaced on the
Board of Directors by a designee of the Nominating Committee (it being understood and agreed that the replacement of such Director shall not be a condition to such Director’s removal and, until such time as the Nominating Committee makes any
such replacement, the Board of Directors will continue to act in the ordinary course). 

  

	 	(c)	 After the end of the Initial Period, each of Freeport or Inalum may notify the other of a Disqualifying Action
by any Director, together with reasonable evidence to support such claim, in which case the Party who received such notice will act expeditiously and vote in favour of the removal of such Director, unless, acting reasonably, such Party has the
justified belief that the evidence 

  
 25 

	 	
submitted to support such claim is insufficient to show a Disqualifying Action has occurred. Any Director so removed will be replaced on the Board of Directors by a designee of the Nominating
Committee (it being understood and agreed that the replacement of such Director shall not be a condition to such Director’s removal and, until such time as the Nominating Committee makes any such replacement, the Board of Directors will
continue to act in the ordinary course). 

  

	 	(d)	 Without limiting the foregoing, if the Directors are designated pursuant to the Shareholder Designated
Procedure, if the Person or Persons entitled to nominate any Director pursuant to Clause 5.5(a) shall request in writing the removal of such Director, each Shareholder shall vote all of its Ordinary Shares or execute proxies or written consents, as
the case may be, and take all other necessary action (including causing the Company to call a general meeting of Shareholders) in order to ensure such Director is removed (and such Director shall be replaced pursuant to Clause 5.5(d)(ii)).

  

	5.5	 The Nominating Committee and Vacancies 

 

	 	(a)	 The Nominating Committee shall, acting in the best interests of the Company, develop qualifications required
of, and a selection process in respect of, prospective members of the Board of Directors; provided that if, prior to the end of any five-year term of the Board of Directors, the Nominating Committee has not agreed on the successor members of
the Board of Directors, such successor members shall be designated as follows (the “Shareholder Designation Procedure”): 

  

	 	(i)	 three (3) Directors nominated by Freeport (for so long as Freeport holds at least 25% of the outstanding
Ordinary Shares) and three (3) Directors nominated by Inalum Group (for so long as Inalum Group holds at least 25% of the outstanding Ordinary Shares); and 

 

	 	(ii)	 the Nominating Committee shall determine the roles of the Directors. 

 

	 	(b)	 A quorum of the Nominating Committee shall consist of all of the members of the Nominating Committee (present
in person or by power attorney as contemplated by the following sentence). A Shareholder Representative on the Nominating Committee shall be entitled to cast votes on behalf of any other Shareholder Representative on the Nominating Committee
nominated by the same Shareholder(s), that is not in attendance at any meeting by virtue of a power of attorney. Actions of the Nominating Committee are adopted by the affirmative vote of the majority of the members of the Nominating Committee.

  

	 	(c)	 The Nominating Committee shall develop a secondment policy pursuant to which the Shareholders would have an
opportunity to second employees to the Company and the Company Subsidiaries. 

  
 26 

	 	(d)	 If as a result of the death, disability, retirement, resignation, removal or otherwise, a Director appointed by
the Nominating Committee ceases to serve on the Board of Directors: 

  

	 	(i)	 if the Board was not comprised pursuant to the Shareholder Designation Procedure, then (A) the Nominating
Committee, acting in the best interests of the Company, shall nominate another individual (such person, the “Replacement Director Nominee”) to fill such vacancy, (B) such Replacement Director Nominee shall be appointed
for the remaining term of the Director being replaced by such Replacement Director Nominee; and (C) if the Nominating Committee does not agree on the appointment of any Replacement Director Nominee with respect to a vacancy, then such vacancy
shall remain until such time as the Nominating Committee so agrees; provided that if the Nominating Committee’s failure to agree on a Replacement Director Nominee would result in the Board being comprised of fewer than four
(4) Directors, then the Shareholder Designation Procedure shall apply except that during the Initial Period Freeport shall (in consultation with, and giving due regard to the views of, Inalum Group) determine the roles of Directors other than
the President Director (who shall be determined by the Nominating Committee); or 

  

	 	(ii)	 if the Board was comprised pursuant to the Shareholder Designation Procedure, then the Shareholder that
nominated the vacating Director shall be entitled to nominate a replacement for that Director and such replacement shall be appointed for the remaining term of the Director being replaced. 

 

	5.6	 Shareholder Voting for Nominated Directors 

Each Shareholder agrees that, if at any time it is then entitled to vote for the appointment of directors to the Board of Directors, it shall
vote all of its Ordinary Shares or execute proxies or written consents, as the case may be, and take all other necessary action (including causing the Company to call a general meeting of Shareholders) in order to ensure that any individuals
nominated under this Clause 5 (including Replacement Director Nominees) are appointed to the Board of Directors (including, to the extent necessary, by causing the removal of any incumbent Directors). If Applicable Law should prevent or disqualify
any individual nominated under this Clause 5 from being appointed to the Board of Directors, a replacement individual shall be nominated either by the Nominating Committee, Freeport or the Inalum Group (depending on how the Board of Directors is
constituted at that time) in accordance with Clause 5.5. The Company shall use its best efforts to cause the individuals nominated under this Clause 5 to be appointed to the Board of Directors as soon as practicable following the nomination of such
Replacement Director Nominee (including, to the extent necessary, by causing the removal of any 

  
 27 

 
incumbent Directors) and, in any event, prior to the taking of any other action of the Board of Directors. 
  

	5.7	 Meetings 

  

	 	(a)	 The Board of Directors shall hold a regularly scheduled meeting at least once every calendar quarter, and at
such other times as a majority of the members of the Board of Directors may agree. The Company shall pay all reasonable out-of-pocket expenses incurred by each member of
the Board of Directors in connection with attending meetings of the Board of Directors, meetings of any committee of the Board of Directors of which the relevant member of the Board of Directors is a member, and any general meeting of Shareholders.

  

	 	(b)	 To the extent Applicable Laws allow, at the request of the Board of Directors, the Board of Directors may hold
meetings at the same time and at the same place as the meetings held by the Board of Commissioners in accordance with this Agreement. 

  

	 	(c)	 Members of the Board of Directors may participate in a meeting of the Board of Directors or any committee
thereof, by means of a conference telephone or similar communications equipment by means of which all Persons participating in the meeting can hear one another, and such participation shall constitute the presence of such member for purposes of
determining whether a quorum has been met. 

  

	 	(d)	 Meetings of the Board of Directors shall be chaired by the President Director, or if the President Director is
not present or prevented from attending, the Vice President Director. If both the President Director and the Vice President Director are not present or prevented from attending, the meeting shall be chaired by a person elected by and from the
Directors present. The chair of a meeting of the Board of Directors may vote in his or her own right but does not have a casting vote. 

  

	5.8	 Notice of Meetings 

Notice of a meeting of the Board of Directors or any committee thereof stating the place, date and hour of the meeting and the agenda for which
the meeting is called shall be given to each member of the Board of Directors by telephone, electronic mail or facsimile no less than five Business Days before the date of the meeting unless otherwise agreed by all Directors. Presence at the meeting
shall constitute waiver of any deficiency of notice, except when such member of the Board of Directors attends the meeting for the express purpose of objecting, at the beginning of the meeting, to the transaction of any business because the meeting
is not called or convened in accordance with this Agreement. 

  
 28 

	5.9	 Quorum 

  

	 	(a)	 A quorum of the Board of Directors shall consist of a majority of the total number of members of the Board of
Directors; provided that during periods where the Directors have been appointed by the Shareholders pursuant to the Shareholder Designation Procedure, no meeting of the Board of Directors shall be considered to have a quorum unless at least one
Director nominated by each of Freeport (for as long as Freeport holds at least 25% of the outstanding Ordinary Shares) and Inalum Group (for as long as the Inalum Group holds at least 25% of the outstanding Ordinary Shares) is in attendance.

  

	 	(b)	 If a quorum is not present within 30 minutes from the scheduled start of a meeting: 

 

	 	(i)	 the meeting is adjourned for a minimum of 24 hours after the time appointed for the original meeting, however
the day for the adjourned meeting must be a Business Day; and 

  

	 	(ii)	 the quorum and the place of the adjourned meeting is otherwise the same as for the original meeting.

  

	 	(c)	 If a quorum is not present within 30 minutes from the scheduled start of the adjourned meeting, the meeting is
dissolved. 

  

	 	(d)	 The only matters that may be considered at the adjourned meeting are matters which were included in the notice
provided in relation to the original meeting under Clause 5.8. 

  

	5.10	 Voting 

  

	 	(a)	 Actions of the Board of Directors are adopted by the affirmative Majority vote of the Board of Directors at a
duly convened meeting of the Board of Directors at which a quorum is present. 

  

	 	(b)	 Each member of the Board of Directors shall vote in accordance with the decision of the Shareholders in
relation to the matters set out in Clause 8.3(f), and take all actions necessary to give effect to any affirmative vote of the Shareholders under Clause 8.3(f). 

 

	 	(c)	 Each member on the Board of Directors shall have one vote; provided that a Shareholder Representative on the
Board of Directors shall be entitled to cast votes on behalf of any other Shareholder Representative on the Board of Directors nominated by the same Shareholder(s) pursuant to Clause 5.5(a), that is not in attendance at any meeting by virtue of a
power of attorney. 

  

	 	(d)	 Notwithstanding this Clause 5, on any matter requiring an approval or consent of the Board of Directors, the
Board of Directors or any committee thereof may take such action without a meeting, without notice and without a vote if a 

  
 29 

	 	
consent or consents in writing, setting forth the action to be taken, shall be signed by all of the members of the Board of Directors (or in the case of a committee of the Board of Directors, all
of the members of such committee). 

  

	5.11	 Deadlock Matters 

 

	 	(a)	 Subject to Clauses 5.11(b), all Deadlock Matters in respect of the Board of Directors must be referred to the
Board of Commissioners for a decision. 

  

	 	(b)	 If a Deadlock Matter in respect of the Board of Directors occurs in relation to the approval of an Annual
Financial Plan, the Deadlock Matter will be deemed resolved pursuant to Clause 9.3(a)(iv). 

  

	 	(c)	 If a Deadlock Matter in respect of the Board of Directors occurs in relation to a matter described in Clause
7.7(c), the Board of Directors will be deemed to have approved all matters that were approved by the Finance Committee. 

  

	 	(d)	 The Shareholders, the Board of Commissioners, the Board of Directors, the Operating Committee, the Finance
Committee and any other committee of the Company established in accordance with this Agreement must each, to the extent required by (and subject to) all Applicable Laws or otherwise, and acting in the best interests of the Company, take all such
action and do all such things (including pass any resolution or sign or date any document) necessary to effect any resolution that applies to a Deadlock Matter in respect of the Board of Directors under Clause 5.11(b). 

 

	5.12	 Minutes of Meetings 

Minutes of the meetings of the Board of Directors shall be drawn up by a person present at the meeting designated by the chairman of the
meeting and shall be signed by all members of the Board of Directors present at the meeting to verify the completeness and accuracy of the minutes. Minutes of a meeting made and signed shall serve as conclusive evidence concerning the resolutions
adopted at the meeting concerned. If such minutes are drawn up by a notary, members’ signatures shall not be required. A copy of or excerpt from the minutes of meeting of the Board of Directors shall be deemed a legal copy or excerpt if it is
stated to be a true copy or excerpt and is signed by all members of the Board of Directors or if it is issued by the notary who has drawn up the minutes concerned. 
  

	5.13	 Language 

  

	 	(a)	 Meetings of the Board of Directors shall be conducted in the English language provided that if a member of the
Board of Directors is not comfortable with the English language, such member shall be entitled, at the cost of the Company, to use the services of an interpreter at such meetings. 

 

	 	(b)	 All notices of meeting and papers to be considered at any meeting of the Board of Directors shall be
accompanied by an English translation thereof, as shall 

  
 30 

	 	
any other papers that any member of the Board of Directors may reasonably request prior to the meeting. 

  

	 	(c)	 The draft minutes (subject to approval at the next meeting) of any such meetings shall be provided to the
members of the Board of Directors in English and in Indonesian within a reasonable time period after such meeting (and in any event by no later than the date on which the agenda and board papers for the next following meeting are due to be
circulated); in the event of any inconsistency between the English and Indonesian texts, the English text shall prevail. 

  

	5.14	 Other Actions Taken by the Board of Directors 

 

	 	(a)	 In addition to the committees expressly provided for in this Agreement, the Board of Directors may create
additional committees as it may determine. 

  

	 	(b)	 Subject to acting in the best interests of the Company and complying with all Applicable Laws, the Board of
Directors (and each individual Director making up the Board of Directors) must take steps to implement, and may not act inconsistently with the LTIP, the Annual Operating Plan and Annual Financial Plan (after giving effect to any amendments thereto
or deviations therefrom to the extent permitted by the terms of this Agreement). 

  

	5.15	 Health, Security, Environment and Community Development 

 

	 	(a)	 The Board of Directors will unanimously agree on the appointment of an appropriate consultant to advise the
Board of Directors with respect to community development and government relations. 

  

	 	(b)	 The Shareholders agree to adopt the practices of the Company at the time of entering into this Agreement in
respect of: 

  

	 	(i)	 engaging an independent third party to conduct an environmental audit every three years; 

 

	 	(ii)	 implementing the International Council on Mining & Metals (“ICMM”) Sustainable
Development Framework; 

  

	 	(iii)	 applying the ICMM’s ten Sustainable Development Principles that are linked to the United Nations
Sustainable Development Goals; 

  

	 	(iv)	 adhering to the United Nations Guiding Principles on Business and Human Rights; and 

 

	 	(v)	 supporting the Extractive Industries Transparency Initiative. 

  
 31 

	6.	 OPERATING COMMITTEE 

 

	6.1	 General  

 

	 	(a)	 The Company acting through the Board of Directors shall form an operating committee (the “Operating
Committee”), which shall have five members. 

  

	 	(b)	 Three members of the Operating Committee shall be appointed by Freeport and two members shall be appointed by
Inalum Group. All members of the Operating Committee must act in the best interests of the Company in fulfilling their duty as a member of the Operating Committee. Each Shareholder, member of the Board of Commissioners and member of the Board of
Directors shall take all necessary action in order to ensure that the candidates appointed in accordance with this Clause are appointed to the Operating Committee. 

 

	 	(c)	 The Operating Committee will be given delegated authority from the Board of Directors (including making
decisions): 

  

	 	(i)	 to the extent provided in schedule 7; 

 

	 	(ii)	 to develop the draft annual operating plan for approval by the Board of Directors (and if applicable the
Shareholders) in accordance with Clauses 6.1(d) and 6.1(e) and oversee the implementation of the Annual Operating Plan approved by the Board of Directors, including: 

 

	 	(A)	 being responsible for ensuring that the day to day activities and operations of the Company and the Company
Subsidiaries are carried out in accordance with the Annual Operating Plan; and 

  

	 	(B)	 providing the Board of Directors with quarterly reports on the operations and activities of the Company,
responding to any reasonable requests for information from the Board of Directors; 

  

	 	(iii)	 to manage the operations of the Company and the Company Subsidiaries, including where relevant making
recommendations to the Board of Directors in relation to the activities of the Company; 

  

	 	(iv)	 to enter into, amend, waive, terminate and take any other actions with respect to contracts so long as such
actions are consistent with the Annual Operating Plan and LTIP (after giving effect to any amendments thereto or deviations therefrom to the extent permitted by the terms of this Agreement); and 

 

	 	(v)	 to select and manage the retention of key operating personnel of the Company and the Company Subsidiaries
required to support and implement the Annual Operating Plan and the operations of the Company and the Company Subsidiaries. 

  
 32 

	 	(d)	 The Operating Committee shall, no later than 20 October each year, prepare a draft annual operating plan
for the activities and operations of the Company for the next calendar year, which draft plan will cover similar topics in similar level of detail as the example draft annual operating plan set forth on schedule 5. The draft annual operating plan
must be consistent with Corporate Policies and Applicable Laws. 

  

	 	(e)	 No later than 20 days following preparation of the draft annual operating plan, the Operating Committee shall
hold a meeting to review the draft annual operating plan and either: 

  

	 	(i)	 approve the draft annual operating plan, after which it will be referred to: 

 

	 	(A)	 the Board of Directors; and, if applicable, 

 

	 	(B)	 the Shareholders if it includes an activity that constitutes a Reserved Matter under Clause 8.3(f),

 for a decision, and once approved by the Board of Directors and, if applicable, the Shareholders it will be the Annual
Operating Plan for the applicable year (the “Annual Operating Plan”); or 
  

	 	(ii)	 not approve the draft annual operating plan, and set out reasons why the proposed plan was not approved.

  

	 	(f)	 If the Operating Committee does not approve the draft annual operating plan, then the Operating Committee must
prepare a revised plan that still meets the requirements of Clause 6.1(d), but addresses the reasons stated by the Operating Committee as to why it did not approve the draft annual operating plan pursuant to Clause 6.1(e)(ii). The Operating
Committee shall hold a meeting to review the revised draft annual operating plan in which case either the provisions of Clause 6.1(e)(i) or Clause 6.1(e)(ii) will apply, 

 

	 	(g)	 The Operating Committee may prepare updates to the Annual Operating Plan each quarterly period during the
currency of the Annual Operating Plan. Any updates to the Annual Operating Plan must meet the requirements of Clause 6.1(d) and be approved in accordance with Clause 6.1(e) before they are effective. 

 

	 	(h)	 Actions that are not approved in the Annual Operating Plan and constitute a deviation to the LTIP require
Shareholder approval as a Reserved Matter pursuant to Clause 8.3(f); provided that the Operating Committee and the Company may take actions that constitute a deviation to the then-current Annual Operating Plan without Shareholder approval in
the following circumstances: 

  

	 	(i)	 the plan or action does not constitute a Significant Deviation to the LTIP; or 

  
 33 

	 	(ii)	 the action is a Non-Discretionary Action. 

 

	 	(i)	 The Shareholders agree and acknowledge that the LTIP may require amendment as a result of any circumstance
described in, and/or action taken pursuant to, Clause 6.1(h)(ii), and will engage in good faith discussions with each other to agree such amendments to the LTIP. 

 

	6.2	 Reporting 

The Operating Committee must prepare quarterly reports for the Board of Directors and respond to any other reasonable requests for information
or reporting received from the Board of Directors from time to time in respect of any functions that the Board of Directors has delegated to the Operating Committee. 
  

	6.3	 Meetings 

  

	 	(a)	 The Operating Committee shall hold a regularly scheduled meeting at least once every calendar quarter, and at
such times as determined by a majority of the members of the Operating Committee, to review the operations of the Company, studies related to the Company’s mining and development plans, and environmental management programs, and to monitor
execution of Company’s capital projects and other activities against the Annual Operating Plan. 

  

	 	(b)	 Any member of the Operating Committee may call a special meeting by notice to the other members of the
Operating Committee in accordance with Clause 6.4 (“Operating Committee Special Meeting”). 

  

	 	(c)	 The Operating Committee may hold meetings by means of telephone or video conference or similar, so long as all
Persons participating in the meeting can hear one another, and such participation will constitute the presence of such Person for the purposes of determining whether a quorum has been met. 

 

	6.4	 Notice of Meeting 

Notice of a meeting of the Operating Committee stating the place, date and hour of the meeting and the agenda for which the meeting is called
shall be given to each member of the Operating Committee by telephone, electronic mail or facsimile no less than five Business Days before the date of the meeting, or in the case of an Operating Committee Special Meeting, no less than ten Business
Days before the date of the meeting, or if the meeting is to consider an Emergency Situation, a reasonable time before the date of the meeting (which, for the avoidance of doubt, may be less than five Business Days). 

 

	6.5	 Quorum 

  

	 	(a)	 A quorum of the Operating Committee shall consist of a majority of the total number of members of the Operating
Committee, however no 

  
 34 

	 	
Operating Committee meeting shall be considered to have a quorum unless at least one representative of each of Freeport (for as long as Freeport holds at least 25% of the Ordinary Shares) and
Inalum Group (for so long as the Inalum Group holds at least 25% of the Ordinary Shares) is in attendance. Each of Freeport and Inalum Group must use reasonable efforts to cause its representatives to attend or participate in each meeting and
neither Freeport nor Inalum Group shall withhold the presence or participation of its representatives to forestall decisions of the Operating Committee. 

  

	 	(b)	 If a quorum is not present within 30 minutes from the scheduled start of a meeting: 

 

	 	(i)	 the meeting is adjourned for a minimum of 24 hours after the time appointed for the original meeting, however
the day for the adjourned meeting must be a Business Day; and 

  

	 	(ii)	 the quorum and the place of the adjourned meeting is otherwise the same as for the original meeting.

  

	 	(c)	 If a quorum is not present within 30 minutes from the scheduled start of the adjourned meeting, the meeting is
adjourned for a minimum of three Business Days after the appointed time for the adjourned meeting and the place of the second adjourned meeting is otherwise the same as for the original meeting. The quorum for the second adjourned meeting of the
Operating Committee shall consist of a majority of the total number of members of the Operating Committee. 

  

	 	(d)	 The only matters that may be considered at the adjourned meeting or the second adjourned meeting are matters
which were included in the notice provided in relation to the original meeting under Clause 6.5(b). 

  

	6.6	 Voting 

  

	 	(a)	 Each member of the Operating Committee will have one vote, and all actions of the Operating Committee will be
decided by Majority vote. A Shareholder Representative on the Operating Committee shall be entitled to cast votes on behalf of any other Shareholder Representative on the Operating Committee nominated by the same Shareholder(s), that is not in
attendance at any meeting by virtue of a power of attorney. 

  

	 	(b)	 Each member of the Operating Committee shall vote in accordance with the decision of the Shareholders in
relation to the matters set out in Clause 8.3(f), and take all actions necessary to give effect to any affirmative vote of the Shareholders under Clause 8.3(f). 

  
 35 

	6.7	 Minutes of Meetings 

Minutes of the meetings of the Operating Committee shall be drawn up by a Person present at the meeting designated by the meeting attendees and
shall be signed by all members of the Operating Committee present at the meeting to verify the completeness and accuracy of the minutes. Minutes of a meeting made and signed shall serve as conclusive evidence concerning the resolutions adopted at
the meeting concerned. If such minutes are drawn up by a notary, members’ signatures shall not be required. A copy of or excerpt from the minutes of meeting of the Operating Committee shall be deemed a legal copy or excerpt if it is stated to
be a true copy or excerpt and is signed by all members of the Operating Committee or if it is issued by the notary who has drawn up the minutes concerned. 
  

	6.8	 Deadlock Matters 

Deadlock Matters in respect of the Operating Committee will be referred to the Board of Directors for consideration. 

 

	6.9	 Removal and Vacancies 

A Shareholder entitled to appoint a particular number of members to the Operating Committee shall have the right to remove from the Operating
Committee any such member appointed by such Shareholder and to fill vacancies in the office of such a member of the Operating Committee appointed by such Shareholder. 
  

	7.	 FINANCE COMMITTEE 

 

	7.1	 General 

  

	 	(a)	 The Company acting through the Board of Directors shall form a finance committee (the “Finance
Committee”), which shall have four members. 

  

	 	(b)	 Two members of the Finance Committee shall be appointed by Freeport and two members shall be appointed by
Inalum Group. All members of the Finance Committee must act in the best interests of the Company in fulfilling their duty as a member of the Finance Committee. 

 

	 	(c)	 The Finance Committee will be given delegated authority from the Board of Directors (including making
decisions) to be responsible for developing a draft annual financial plan (approved in accordance Clauses 7.1(e) and 7.1(f)) and for overseeing the execution of the Annual Financial Plan approved by the Board of Directors, including:

  

	 	(i)	 to review finance forecasts, operating and maintenance budgets and capital expenditure requirements;

  

	 	(ii)	 to review financial statements; 

  
 36 

	 	(iii)	 to review and make recommendations to the Board of Directors for the declaration and distribution of interim
dividends in accordance with the Dividend Policy; 

  

	 	(iv)	 to review corporate insurance coverage with the Operating Committee; 

 

	 	(v)	 to review and approve the manner in which operating and/or capital costs are to be funded;

  

	 	(vi)	 to review and recommend approval of financial commitments and major corporate strategic actions; and

  

	 	(vii)	 to make recommendations to the Board of Directors in relation to the above. 

 

	 	(d)	 The Finance Committee shall report periodically to the Board of Directors and the Board of Directors will
retain oversight of the Finance Committee. 

  

	 	(e)	 The Finance Committee shall, no later than 20 October each year, prepare a draft financial plan for the
activities and operations of the Company for the next calendar year, which draft annual financial plan will cover similar topics in similar level of detail as the example draft annual financial plan set forth on schedule 5. The draft annual
financial plan must be consistent with the Annual Operating Plan, Corporate Policies and Applicable Laws, and contain a breakdown on a quarterly basis of: 

  

	 	(i)	 decisions on the Company’s leverage, including long- and short-term debt; 

 

	 	(ii)	 implementation of the Dividend Policy; 

 

	 	(iii)	 managing fluctuations in interests rates and commodity prices (hedging) and investment of financial assets;

  

	 	(iv)	 estimated capital costs and operating costs to be incurred during the applicable calendar year;

  

	 	(v)	 estimated production of products; 

 

	 	(vi)	 estimated revenues; 

  

	 	(vii)	 amounts and timing of expected cash requirements for the Company, including for any smelter project and
expansion projects; and 

  

	 	(viii)	 such other items that the Finance Committee may deem necessary or desirable. 

  
 37 

	 	(f)	 No later than 20 days following preparation of the draft annual financial plan the Finance Committee shall hold
a meeting to review the draft annual financial plan and either: 

  

	 	(i)	 approve the draft annual financial plan, after which it will be referred to: 

 

	 	(A)	 the Board of Directors; and, if applicable, 

 

	 	(B)	 the Shareholders if it includes an activity that constitutes a Reserved Matter under Clause 8.3(f),

 for a decision, and once approved by the Board of Directors and, if applicable, the Shareholders it will be the Annual
Financial Plan for the applicable year (the “Annual Financial Plan”); or 
  

	 	(ii)	 not approve the draft annual financial plan, and set out reasons why the draft annual financial plan was not
approved. 

  

	 	(g)	 If the Finance Committee does not approve the draft annual financial plan, then the Finance Committee must
prepare a revised draft annual financial plan that still meets the requirements of Clause 7.1(e), but addresses the reasons stated by the Finance Committee as to why it did not approve the draft annual financial plan pursuant to Clause 7.1(f)(ii).
The Finance Committee shall hold a meeting to review the revised draft annual finance plan in which case either the provisions of Clause 7.1(f)(i) or Clause 7.1(f)(ii) will apply, 

 

	 	(h)	 The Finance Committee may prepare updates to the Annual Financial Plan each quarterly period during the
currency of the Annual Financial Plan. Any updates to the Annual Financial Plan must meet the requirements of Clause 7.1(e) and be approved in accordance with Clause 7.1(f) before they are effective. 

 

	 	(i)	 Actions that are not approved in the Annual Financial Plan and constitute a deviation to the LTIP require
Shareholder approval as a Reserved Matter pursuant to Clause 8.3(f); provided that the Operating Committee, Finance Committee and the Company may take actions that constitute a deviation to the then-current Annual Financial Plan without
Shareholder approval in the following circumstances: 

  

	 	(i)	 the plan or action does not constitute a Significant Deviation to the LTIP; or 

 

	 	(ii)	 the action is a Non-Discretionary Action. 

 

	7.2	 Meetings 

  

	 	(a)	 The Finance Committee shall hold a regularly scheduled meeting at least once every calendar quarter, and at
such times as determined by a majority of the 

  
 38 

	 	
members of the Finance Committee, to review the operations of the Company and studies related to the Company’s financial affairs. 

 

	 	(b)	 Any member of the Finance Committee may call a special meeting by notice to the other members of the Finance
Committee in accordance with Clause 7.3 (“Finance Committee Special Meeting”). 

  

	 	(c)	 The Finance Committee may hold meetings by means of telephone or video conference or similar, so long as all
Persons participating in the meeting can hear one another, and such participation will constitute the presence of such Person for the purposes of determining whether a quorum has been met. 

 

	7.3	 Notice of Meeting 

Notice of a meeting of the Finance Committee stating the place, date and hour of the meeting and the agenda for which the meeting is called
shall be given to each member of the Finance Committee by telephone, electronic mail or facsimile no less than five Business Days before the date of the meeting, or in the case of a Finance Committee Special Meeting, no less than ten Business Days
before the date of the meeting, or if the meeting is to consider an Emergency Situation, a reasonable time before the date of the meeting (which, for the avoidance of doubt, may be less than five Business Days). 

 

	7.4	 Quorum 

  

	 	(a)	 A quorum of the Finance Committee shall consist of a majority of the total number of members of the Finance
Committee, however no Finance Committee meeting shall be considered to have a quorum unless at least one representative of each of Freeport (for as long as Freeport holds at least 25% of the outstanding Ordinary Shares) and the Inalum Group (for so
long as the Inalum Group holds at least 25% of the outstanding Ordinary Shares) is in attendance. Each Shareholder must use reasonable efforts to cause its representatives to attend or participate in each meeting and no Shareholder shall withhold
the presence or participation of its representatives to forestall decisions of the Finance Committee. 

  

	 	(b)	 If a quorum is not present within 30 minutes from the scheduled start of a meeting: 

 

	 	(i)	 the meeting is adjourned for a minimum of 24 hours after the time appointed for the original meeting, however
the day for the adjourned meeting must be a Business Day; and 

  

	 	(ii)	 the quorum and the place of the adjourned meeting is otherwise the same as for the original meeting.

  

	 	(c)	 If a quorum is not present within 30 minutes from the scheduled start of the adjourned meeting, the meeting is
dissolved. 

  
 39 

	 	(d)	 The only matters that may be considered at the adjourned meeting are matters which were included in the notice
provided in relation to the original meeting under Clause 7.2(c). 

  

	7.5	 Voting 

Each member of the Finance Committee will have one vote, and all actions of the Finance Committee will be decided by Majority vote. A
Shareholder Representative on the Finance Committee shall be entitled to cast votes on behalf of any other Shareholder Representative on the Finance Committee nominated by the same Shareholder(s), that is not in attendance at any meeting by virtue
of a power of attorney. 
  

	7.6	 Minutes of Meetings 

Minutes of the meetings of the Finance Committee shall be drawn up by a Person present at the meeting designated by the meeting attendees and
shall be signed by all members of the Finance Committee present at the meeting to verify the completeness and accuracy of the minutes. Minutes of a meeting made and signed shall serve as conclusive evidence concerning the resolutions adopted at the
meeting concerned. If such minutes are drawn up by a notary, members’ signatures shall not be required. A copy of or excerpt from the minutes of meeting of the Finance Committee shall be deemed a legal copy or excerpt if it is stated to be a
true copy or excerpt and is signed by all members of the Finance Committee or if it is issued by the notary who has drawn up the minutes concerned. 
  

	7.7	 Deadlock Matters  

 

	 	(a)	 Subject to Clauses 7.7(b) and 7.7(c), Deadlock Matters in respect of the Finance Committee will be referred to
the Board of Directors for consideration. 

  

	 	(b)	 In respect of a Deadlock Matter in respect of the Finance Committee relating to the approval of a
recommendation to the Board of Directors of a draft annual financial plan, the Deadlock Matter will be resolved by the Finance Committee being deemed to recommend to the Board of Directors the draft annual financial plan provided it satisfies the
criteria set out in Clauses 9.3(a)(iv)(A) to 9.3(a)(iv)(E). 

  

	 	(c)	 In respect of a Deadlock Matter in respect of the Finance Committee relating to: 

 

	 	(i)	 the approval of a Reserved Matter, such Deadlock Matter will be referred to the Shareholders pursuant to Clause
8.3(f); 

  

	 	(ii)	 the approval of the manner in which any operating or capital costs to be incurred by the Company will be funded
that is not set out or considered in the Annual Financial Plan, such Deadlock Matter will be resolved by the Finance Committee being deemed to approve that any operating or 

  
 40 

	 	
capital costs to be incurred by the Company will be funded by a cash capital contribution by the Shareholders; and 

 

	 	(iii)	 the approval of a recommendation to the Board of Directors of any distributions or dividends, which Deadlock
Matter will be resolved by the Board of Directors being deemed to approve any distribution or dividend that is in accordance with the Dividend Policy or schedule 9. 

 

	7.8	 Removal and Vacancies 

A Shareholder entitled to appoint a particular number of members to the Finance Committee shall have the right to remove from the Finance
Committee any such member appointed by such Shareholder and to fill vacancies in the office of such a member of the Finance Committee appointed by such Shareholder. 
  

	8.	 SHAREHOLDER MATTERS 

 

	8.1	 Meetings 

  

	 	(a)	 The Company shall hold a general meeting of the shareholders of the Company annually, and no later than six
months following the end of each fiscal year. 

  

	 	(b)	 The Board of Directors shall convene a general meeting of shareholders at the written request of the Board of
Commissioners, or at the written request of one or more shareholders representing (whether jointly or individually) at least 10% of the total Ordinary Shares (which may consist of one or more Shareholders). Any such written request by shareholders
must be sent by registered mail, stating the matter to be discussed together with the reasons, with a copy submitted to the Board of Commissioners. 

  

	 	(c)	 A circular resolution in writing signed by or on behalf of all the Shareholders shall be as valid and effective
for all purposes as a resolution passed by the Shareholders at a meeting duly convened, held and constituted. 

  

	8.2	 Quorum 

A quorum for any meeting of the shareholders of the Company shall consist of holders of two-thirds of
the total outstanding Ordinary Shares being present or represented at the meeting, unless Applicable Law as in effect on the date of this Agreement or in effect from time to time hereafter requires a higher quorum (including any meeting for the
approval of (i) any merger, amalgamation, acquisition, spin-off, bankruptcy filing, extension of the period of establishment of the Company or dissolution of the Company or (ii) grant of a security
interest over more than 50% of the Company’s assets in any fiscal year, in each case which shall require at least 75% of the outstanding Ordinary Shares to be present or represented at the applicable shareholders meeting in order to constitute
a quorum). If the required quorum is not 

  
 41 

 
met, a second meeting will be convened at which the same quorum requirement will apply. 
  

	8.3	 Voting Thresholds 

 

	 	(a)	 Each Share will carry one vote on both a show of hands and a poll at any Shareholder meeting. The chairman at
any Shareholder meeting shall not be entitled to a second or casting vote. 

  

	 	(b)	 Subject to Clauses 8.3(d), 8.3(e) and 8.3(f), all actions of the shareholders of the Company shall require the
affirmative vote of at least two-thirds of the votes cast by eligible Shareholders at a duly-convened meeting of the Shareholders at which a quorum is present. 

 

	 	(c)	 Except in relation to the matters set out in Clauses 8.3(d), 8.3(e) and 8.3(f), and subject to the terms of
this Agreement, each of the Shareholders agrees to vote their shares and to exercise their rights under the Articles and the Indonesian Company Law to: 

  

	 	(i)	 support the decisions of the Board of Directors (including to follow recommendations made by the Operating
Committee and Finance Committee under delegated authority from the Board of Directors) and the Board of Commissioners; 

  

	 	(ii)	 uphold the agreed governance structure set forth in this Agreement; and 

 

	 	(iii)	 ensure compliance with this Agreement and Applicable Laws. 

 

	 	(d)	 The approval of any amendment to the Articles shall require the affirmative vote representing at least two-thirds of the outstanding Ordinary Shares. 

  

	 	(e)	 The approval of the following shall require the affirmative vote of at least 75% of the votes cast by eligible
Shareholders at the applicable Shareholders’ meeting: 

  

	 	(i)	 any merger, amalgamation, acquisition, spin-off, bankruptcy filing,
extension of the period of establishment of the Company or any Company Subsidiary or dissolution of the Company or any of the Company Subsidiaries; 

  

	 	(ii)	 any grant of a security interest over more than 50% of the Company’s consolidated assets in any fiscal
year; 

  

	 	(iii)	 any dismissal of any member of the Board of Commissioners or Board of Directors of the Company or any of the
Company Subsidiaries; and 

  

	 	(iv)	 Reserved Matters. 

  
 42 

	 	(f)	 Inalum Group shall have the right to approve the following actions at a general meeting of Shareholders (or by
written resolution), prior to such actions being taken, provided that, at the time consent is required, Inalum Group holds at least 25% of the outstanding Ordinary Shares (each such action, a “Reserved Matter”):

  

	 	(i)	 approval of any draft annual operating plan or draft annual financial plan, or any amendment thereto that
includes an action or expense that is a Significant Deviation to the LTIP (other than Significant Deviations resulting from Non-Discretionary Actions); provided that, to the extent any draft annual operating
plan required to be approved pursuant to this Clause 8.3(f)(i) is not approved, the Shareholders shall work in good faith to develop and approve an alternative draft annual operating plan, and, prior to the time at which such alternative draft
annual operating plan is agreed, the Company shall continue to operate prudently in the ordinary course to continue developing the projects identified by the LTIP and to incur costs to protect the value of the resources as contemplated by the LTIP;

  

	 	(ii)	 any change in the Company’s share capital; 

 

	 	(iii)	 any material modification of the purpose of the Company or duration of the Company, including by way of merger
or division of the Company, the sale of all or substantially all of the assets and liabilities of the Company, or proposal that the Company be dissolved or subject to receivership or administration; 

 

	 	(iv)	 any grant of a security interest over more than 50% of the Company’s consolidated assets in any fiscal
year; 

  

	 	(v)	 any proposed change in the residency of the Company for tax purposes; 

 

	 	(vi)	 any proposal to materially amend, waive any material right under or terminate the Company’s special mining
business permit (the “IUPK”); 

  

	 	(vii)	 any incurrence of indebtedness for borrowed money which: 

 

	 	(A)	 exceeds US$1 billion in aggregate and would cause the Interest Coverage Ratio to fall below two to one; or

  

	 	(B)	 is not on arms’ length terms; 

 

	 	(viii)	 any acquisition or disposition (in each case, whether of stock or assets, whether affected by purchase, sale,
merger or otherwise): 

  

	 	(A)	 in excess of US$250 million; or 

 

	 	(B)	 that is not on arms’ length terms; 

  
 43 

 in each case other than the acquisitions relating to the Grasberg Smelter (as identified in
the LTIP); 
  

	 	(ix)	 any transactions with any Shareholder or Affiliate of a Shareholder, other than: 

 

	 	(A)	 the entry into Shareholder Loans; and 

 

	 	(B)	 the Freeport Services Agreement and a revolving credit note (including any drawdowns thereunder) (substantially
in the form set out on schedule 8), 

 however any material amendment to or termination (other than a termination in
accordance with the terms of such agreements) of such agreements or loans requires the consent of Inalum Group pursuant to this Clause 8.3(f); or 
  

	 	(x)	 payment of any dividends other than in accordance with the Dividend Policy or schedule 9.

 A series of related transactions shall be construed as a single transaction, and any amounts involved in such series of
related transactions shall be aggregated, to determine whether a matter is a Reserved Matter. 
  

	8.4	 Deadlock Matters 

In the event a Deadlock Matter in respect of the Shareholders occurs, Clause 9 shall apply. 

 

	8.5	 Provisions of the Articles 

Each Shareholder agrees to vote all of its Ordinary Shares or execute proxies or written consents, as the case may be, and to take all other
actions necessary, to ensure that the Articles do not at any time conflict with, any provision of this Agreement. 
  

	8.6	 Implementation of the LTIP, Dividend Policy, Annual Operating Plan and Annual Financial Plan

 The Shareholders acknowledge and agree that the implementation of the LTIP, the Dividend Policy (and any dividends
required by schedule 9), the Annual Operating Plan and the Annual Financial Plan by the Board of Commissioners, Board of Directors, Operating Committee, Finance Committee or any committee of any of the foregoing is in the best interests of the
Company. 
  

	9.	 DEADLOCK  

 

	9.1	 Referral to Shareholder senior executives for good faith discussion  

 

	 	(a)	 If a Deadlock Matter in respect of: 

  
 44 

	 	(i)	 the Shareholders; or 

 

	 	(ii)	 the Board of Commissioners, 

(each, a “Relevant Deadlock Matter”) occurs, then either Freeport or Inalum Group (for as long as they hold at least 25% of
the outstanding Ordinary Shares) may by giving notice to the other Shareholders (a “Deadlock Notice”) refer the Relevant Deadlock Matter to the Chief Executive Officer of each Shareholder (or a person with delegated authority from
the Chief Executive Officer provided that such delegate has full authority to resolve the Relevant Deadlock Matter) (the “Deadlock Appointees”). 
  

	 	(b)	 Any Deadlock Notice must set out: 

 

	 	(i)	 the fact that a Relevant Deadlock Matter has occurred and the background for the Relevant Deadlock Matter as
understood by that Shareholder; 

  

	 	(ii)	 the proposed resolution and the dates on which the meeting of the Shareholders or the meeting of the Board of
Commissioners (as applicable) was held; and 

  

	 	(iii)	 the proposed dates, times and places (being within 28 days from the date of the Deadlock Notice) for the
Deadlock Appointees to meet and discuss in good faith to attempt to resolve the Relevant Deadlock Matter. 

  

	 	(c)	 Within 14 days from receipt of the Deadlock Notice by all Deadlock Appointees, the Deadlock Appointees shall
discuss in good faith with a view to resolving the Relevant Deadlock Matter and shall, in good faith and within 30 days of receipt of a Deadlock Notice by all Deadlock Appointees, schedule two meetings, with at least one meeting being in person, at
a venue agreed by the Deadlock Appointees. 

  

	 	(d)	 If a Deadlock Appointee intends to be accompanied at the meeting by an attorney and/or a consultant, each other
Deadlock Appointee shall be given written notice of such intention at least three (3) Business Days in advance and may also be accompanied at the meeting by an attorney and/or a consultant. 

 

	9.2	 Ultimate Deadlock Matters 

If a Relevant Deadlock Matter is not finally resolved in accordance with Clause 9.1 within 30 days of receipt of a Deadlock Notice by all
Deadlock Appointees: 
  

	 	(a)	 and a relevant Ultimate Deadlock Resolution applies, the Relevant Deadlock Matter shall be exclusively and
ultimately resolved in accordance with the applicable Ultimate Deadlock Resolution; 

  
 45 

	 	(b)	 and if no relevant Ultimate Deadlock Resolution applies, the matter will not be resolved unless the
Shareholders otherwise agree and the Relevant Deadlock Matter will not proceed. 

  

	9.3	 Ultimate Deadlock Resolutions 

 

	 	(a)	 Relevant Deadlock Matters that are not finally resolved in accordance with Clause 9.1 within 30 days of receipt
of a Deadlock Notice by all Deadlock Appointees will be exclusively and ultimately resolved as follows: 

  

	 	(i)	 in respect of the distribution of dividends (including interim dividends), the distribution of dividends that
are in accordance with the Dividend Policy or schedule 9; 

  

	 	(ii)	 in respect of the approval of any annual financial statements to be used in the annual report by the Board of
Commissioners, the approval of financial statements that have been audited; 

  

	 	(iii)	 in respect of the approval of the Annual Operating Plan, the approval of an Annual Operating Plan that:

  

	 	(A)	 is in the prescribed format for the Annual Operating Plan; 

 

	 	(B)	 adheres to Applicable Laws; 

 

	 	(C)	 is consistent with the Corporate Policies; 

 

	 	(D)	 has been approved by the Operating Committee in accordance with this Agreement; and 

 

	 	(E)	 does not Significantly Deviate from the LTIP, 

and if the Annual Operating Plan does Significantly Deviate from the LTIP (and does not fall within an exception in Clause 6.1(h)), it will be
a Reserved Matter and this Ultimate Deadlock Resolution mechanism will not apply; and 
  

	 	(iv)	 in respect of the approval of any Annual Financial Plan, the approval of an Annual Financial Plan that:

  

	 	(A)	 is in the prescribed format of the Annual Financial Plan; 

 

	 	(B)	 adheres to Applicable Laws; 

 

	 	(C)	 is consistent with the Corporate Policies; 

 

	 	(D)	 is consistent with the approved Annual Operating Plan; and 

 

	 	(E)	 does not Significantly Deviate from the LTIP, 

  
 46 

 and if the Annual Financial Plan does Significantly Deviate from the LTIP, it will be a
Reserved Matter and this Ultimate Deadlock Resolution mechanism will not apply. 
  

	 	(b)	 The Shareholders, the Board of Commissioners, the Board of Directors, the Operating Committee, the Finance
Committee and any other committee of the Company established in accordance with this Agreement must each, to the extent required by (and subject to) all Applicable Laws or otherwise, and acting in the bests interests of the Company, take all such
action and do all such things (including pass any resolution or sign or date any document) necessary to effect any Ultimate Deadlock Resolution that applies under the provisions of this Agreement. 

 

	9.4	 Operation of the Company’s Business 

Each Party acknowledges and agrees that: 
  

	 	(a)	 the existence of any Deadlock Matter does not have the effect of relieving or excusing any Party from the
performance of any obligation under this Agreement and each Party must continue to perform such obligations as and when required under this Agreement during any period in which a deadlock persists; and 

 

	 	(b)	 without limiting Clause 9.4(a), each Shareholder must: 

 

	 	(i)	 procure that its senior executive officers discuss any Relevant Deadlock Matter in accordance with Clause 9.1;
and 

  

	 	(ii)	 at all times, comply with, and discharge its obligations under Applicable Law, the Articles and this Agreement.

  

	10.	 DIVIDEND POLICY AND FUNDING 

 

	10.1	 Dividend Policy 

The Dividend Policy will be as set out in schedule 6. 
  

	10.2	 Funding 

  

	 	(a)	 Funding shall be undertaken by the Company in accordance with Annual Financial Plans. 

 

	 	(b)	 All capital calls made by the Company shall be funded in the manner set forth in Section 3.05 of schedule
9. 

  

	10.3	 Shareholder Loans 

 

	 	(a)	 With respect to any funding needs of the Company or any Company Subsidiary and to the extent provided for in
the Annual Financial Plan, the 

  
 47 

	 	
Company may request Shareholders to contribute funds pursuant to unsecured shareholder loans (each, a “Shareholder Loan”). The principal and interest on Shareholder Loans shall
be repaid in priority to any dividends to the Shareholders; provided that all Shareholder Loans made to fund obligations relating to the Grasberg Smelter shall not be repayable until after the Initial Period. 

 

	 	(b)	 No Shareholder shall be obliged to provide funds in respect of cash calls under Clause 10.2(b); provided that
in the event any other Shareholder is willing to provide the Company with the funds sufficient to meet the obligations required by such capital call, all Shareholders who fund such capital call shall be required to fund such capital call by way of a
Shareholder Loan at an interest rate of LIBOR plus 6% per annum. 

  

	10.4	 Financial Records for the Company to be Kept 

The Company must keep and maintain written financial records that: 
  

	 	(b)	 correctly record and explain the financial position, financial performance and cash flows of the Company
(including all capital and operating costs that accrue); and 

  

	 	(c)	 would enable true and fair financial accounts for the Company to be prepared and audited.

  

	10.5	 Preparing Accounts for the Company  

The Finance Committee must arrange for the preparation of and provide to the Board of Directors and Board of Commissioners: 

 

	 	(a)	 management accounts for the Company for each quarter detailing the financial position of the Company as at the
end of the quarter and for the fiscal year to date; 

  

	 	(b)	 financial accounts for the Company for each quarter, including the following financial statements in respect of
those accounts: 

  

	 	(i)	 balance sheet; 

  

	 	(ii)	 profit and loss statement; and 

 

	 	(iii)	 cash flow statement; and 

 

	 	(c)	 that comply with all applicable accounting standards and generally accepted accounting principles in Indonesia.
The functional currency of the Company shall be United States dollars. 

  
 48 

	10.6	 Audit 

  

	 	(a)	 The Company must ensure that the financial accounts for the Company for each fiscal year are audited within 90
days after the end of the fiscal year. The auditor of the Company shall be the same as the auditor of the ultimate parent company of Freeport; provided that the auditor appointed by the ultimate parent company of Freeport is a “big
four” accounting firm. 

  

	 	(b)	 A Shareholder may, (no more than once in each fiscal year and at that Shareholder’s own expense), cause an
audit of the financial accounts for the Company to be conducted by notifying the Company and each other Shareholder at least 14 days before the start of the audit. 

 

	 	(c)	 To the extent necessary to facilitate the conduct of any audit under this Clause 10.6, the Company must
facilitate reasonable access by the auditors to all information reasonably requested, at all reasonable times and on reasonable prior written notice. 

  

	10.7	 Reports for the Directors and Commissioners 

The Board of Directors must ensure that the Company prepares and provides to the Board of Directors and Board of Commissioners within 60 days
after the end of each fiscal year a detailed management report which includes: 
  

	 	(a)	 the management accounts for the fiscal year prepared by the Company under Clause 10.4; 

 

	 	(b)	 details of the activities and operations of the Company conducted during the fiscal year;

  

	 	(c)	 a comparison of the activities and operations conducted by the Company during, and the financial position and
financial performance of the Company as at the end of, the fiscal year with the targets and budgeted performance in the relevant approved Annual Operating Plan and Annual Financial Plan together with an explanation for any significant
differences between them; 

  

	 	(d)	 details of any factors having the potential to affect the targets, projections or budgeted performance
contained in the currently relevant approved Annual Operating Plan and Annual Financial Plan for the fiscal year; 

  

	 	(e)	 details of any key events and developments relating to the Company; and 

 

	 	(f)	 any other information as may be reasonably required by any Director or commissioner to allow the Board of
Directors or the Board of Commissioners, as applicable, to understand the financial affairs of the Company and to control the efficient operation of the Company. 

  
 49 

	10.8	 Reports for Shareholders  

 

	 	(a)	 The Company must give the Shareholders within 90 days after the end of each fiscal year a detailed annual
report which includes the audited financial accounts and financial statements for the fiscal year prepared by the Company under Clause 10.5(b) and audited under Clause 10.6. 

 

	 	(b)	 The Company must give the Shareholders a copy of all minutes of meetings confirmed pursuant to this Agreement
in respect of meetings of the Board of Commissioners, the Board of Directors, the Operating Committee, the Finance Committee and any other committees created under this Agreement, promptly after completion of the relevant meeting.

  

	 	(c)	 The Company must give the Shareholders all material returns and reports (and each other return and report as
requested) submitted to the Government of Indonesia under the IUPK, within a reasonable time before the latest day for such submission to permit time for review by the Shareholders, provided that tax returns shall not be required to be provided by
the Company under this Clause 10.8(c). 

  

	 	(d)	 The Company must give each Shareholder all financial or other information, including Mining Information and any
relevant information produced or provided to the Company by a third party (including any Persons that are not Affiliates of the Company or either Shareholder), as the Shareholder may from time to time request in writing. 

 

	 	(e)	 The Company must upon reasonable prior notice by a Shareholder, permit representatives of that Shareholder at
all reasonable times during normal working hours to inspect and obtain copies of all documents, records and accounts under the control of the Company or the Company Subsidiaries, provided that the frequency and duration of inspections shall be
without undue hindrance to the proper conduct of the operations or activities of the Company and the Company Subsidiaries. 

  

	10.9	 Request for Additional Information 

A Shareholder may request the Company to provide it, and subject to Clause 10.10, the Company must provide the Shareholder, with information
relating to the affairs of the Company in addition to the information referred to in Clause 10.8. 
  

	10.10	 Supplementary Information 

Subject to any Applicable Law and the Company’s obligations under Clauses 10.7 and 10.8, the Company is not required to provide any
Shareholder with any information with respect to the Company (“Supplementary Information”) unless: 
  

	 	(a)	 a written request is made by a Shareholder to the Board of Directors; and 

  
 50 

	 	(b)	 the request is approved by the Board of Directors, such approval to be considered within 15 days of the request
and not to be unreasonably withheld. 

  

	10.11	 Access to Operations 

At all reasonable times and upon reasonable notice, the Company will allow each Shareholder, at its sole risk and expense, and subject to
reasonable safety regulations, to inspect the assets of the Company and the Company Subsidiaries and observe the operations of the Company, so long as the inspecting Shareholder does not unreasonably interfere with the operations of the Company.

  

	11.	 RESTRICTIONS ON TRANSFER 

 

	11.1	 General Restrictions on Transfer 

 

	 	(a)	 Subject to Applicable Law, Ordinary Shares are not Transferable by the holders thereof without the consent of
the other Shareholders, unless (i) at the time of and as a condition to any such Transfer, the transferee agrees to comply with the restrictions and obligations set forth in this Agreement as if it were the transferor by executing an Adherence
Agreement and (ii) prior to the consummation of an IPO, Freeport complies with Clause 11.2 with respect to any Transfer by Freeport to a Person other than (A) a Qualifying Mining Company or (B) any of Freeport’s Affiliates;
(iii) prior to the consummation of an IPO, Inalum Group complies with Clause 11.2 with respect to any Transfer by Inalum Group to a Person other than any of Inalum Group’s Affiliates. The provisions of Clause 11.2 shall terminate upon the
consummation of an IPO and thereafter the Parties shall be free to Transfer their Ordinary Shares, subject to clause (i) of the preceding sentence to the extent the transferee of such Ordinary Shares shall be assigned any rights of the
transferring Party hereunder. 

  

	 	(b)	 Notwithstanding any other provision of this Agreement, the Company must not register a Transfer of Ordinary
Shares to any person who is not a Party (each such person, an “Incoming Shareholder”) in its shareholders register, unless and until that person executes and delivers to the Company an Adherence Agreement. 

 

	 	(c)	 The Parties acknowledge and agree that, upon the delivery to the Company of an Adherence Agreement executed by
the Incoming Shareholder, the Incoming Shareholder shall be deemed to be a party to and to be bound by this Agreement as a Shareholder, and shall accordingly (without prejudice to any antecedent liabilities of the transferor of the Ordinary Shares
acquired by the Incoming Shareholder (if applicable)) be entitled to all rights available to, and bound by all obligations applicable to, a holder of the class of shares in the Company acquired by the Incoming Shareholder and shall be otherwise
bound by and entitled to the benefit of this Agreement. 

  
 51 

	 	(d)	 Any attempt to Transfer any Ordinary Shares not in compliance with this Agreement shall be null and void ab
initio, and the Company shall not, and shall cause any transfer agent not to, give any effect in the Company’s stock records to such attempted Transfer. 

 

	11.2	 Pre-emption Rights 

 

	 	(a)	 If Freeport or a member of the Inalum Group (“Transferor”) intends to transfer, other than, in
the case of Freeport, to a Qualifying Mining Company or, in the case of either Freeport or Inalum Group, any of such Transferor’s Affiliates, any or all of its Ordinary Shares (“Transfer Shares”), it must, prior to the
completion of such transfer, give a notice (“Transfer Notice”) to the other (the “Non-transferring Shareholders”) and the Company that specifies: 

 

	 	(i)	 the number of Ordinary Shares it intends to transfer (which must not be less than 5% of the issued Ordinary
Shares); 

  

	 	(ii)	 the price at which it is willing to transfer the Transfer Shares (which must be a cash price only)
(“Transfer Price”); and 

  

	 	(iii)	 all other material terms on which the Transferor is willing to transfer the Transfer Shares (which shall
include an acknowledgement that certain Authorisations may be required to effect the transfer of the Transfer Shares). 

  

	 	(b)	 A Transfer Notice is irrevocable once given, unless the
Non-transferring Shareholders agree otherwise. 

  

	 	(c)	 The Transfer Notice is an offer by the Transferor to sell all (but not less than all) of the Transfer Shares to
the Non-transferring Shareholders in proportion to their Percentage Interests (determined as at the date of the Transfer Notice) at the Transfer Price and on the other terms set out in the Transfer Notice (the
“Offer”). 

  

	 	(d)	 The Non-transferring Shareholders may accept the Offer as to all (but
not less than all) of the Transfer Shares (which may be conditional on the relevant Non-transferring Shareholder obtaining applicable Authorisations) by giving a notice (“Transfer Acceptance
Notice”) to the Transferor and the Company within 30 days after the Transfer Notice is given (“Offer Period”), as long as such acceptance does not breach Government Regulation No. 23 of 2010 on the Implementation of
Mineral and Coal Mining Business Activities and MEMR Regulation No. 9 of 2017 on the Share Divestment Procedures and the Mechanism to Determine the Price of the Divestment Share in Mineral and Coal Mining Business Sectors, each as amended from
time to time. For the avoidance of doubt, the Non-transferring Shareholders shall not be permitted to assign their rights in the Transfer Acceptance Notice as the transferee of the Transfer Shares, other than
to an Affiliate of the Non-transferring Shareholders. 

  
 52 

	 	(e)	 If the Non-transferring Shareholders accept the Offer (whether or not
conditional on the relevant Non-transferring Shareholders obtaining applicable Authorisations) under this Clause 11.2: 

 

	 	(i)	 the Transferor and the Non-transferring Shareholders must enter into
the documentation necessary to effect the transfer on the terms set forth in the Transfer Notice and complete the sale and purchase of the Transfer Shares on the latest of: 

 

	 	(A)	 the day which is 10 days after all Authorisations required by the
Non-transferring Shareholders in respect of the transfer of the Transfer Shares, as set out in the Transfer Acceptance Notice are obtained, provided that if such Authorisations are not obtained within 90 days
of the Transferor receiving the Transfer Acceptance Notice, then the Transfer Acceptance Notice shall lapse and the Transferor shall be permitted to transfer the Transfer Shares pursuant to Clause 11.2(f); and 

 

	 	(B)	 any other date the Shareholders agree on in writing before the date in Clause 11.2(e)(i)(A); and

  

	 	(ii)	 at completion of the relevant transfer, the Non-transferring
Shareholders must pay (or ensure its Affiliate pays) the Transfer Price by wire transfer of immediately available funds. 

  

	 	(f)	 If the Non-transferring Shareholders do not accept the Offer by the
expiry of the Offer Period, the Transferor may transfer the Transfer Shares: 

  

	 	(i)	 to any Person; 

  

	 	(ii)	 at a price no less than the Transfer Price; and 

 

	 	(iii)	 on terms no more favourable in the aggregate to such Person than the terms set out in the Transfer Notice,

 within (i) if the Non-transferring Shareholders did not accept the Offer by
the expiry of the Offer Period, three (3) months after the end of the Offer Period or (ii) if the Non-transferring Shareholders accepted the Offer, but the transaction between the Transferor and the Non-transferring Shareholders failed to close as contemplated by Clause 11.2(e)(i)(A), three (3) months after the end of the 90 day period contemplated by Clause 11.2(e)(i)(A); provided, in each case,
that if any Authorisations are required to complete such transfer, such three (3) month period shall be extended (by no longer than 12 months) to allow for such Authorisations to be obtained. 

  
 53 

	11.3	 Legends 

In addition to any other legend that may be required, each certificate for Ordinary Shares issued to any Shareholder shall bear a legend in
substantially the following form: 
 “This security is subject to restrictions on transfer as set forth in the shareholders agreement to
which the company is a party, as amended from time to time, copies of which may be obtained upon request from the company or any successor thereto, and this security may not be voted or offered, sold, pledged or otherwise transferred except in
compliance therewith.” 
  

	12.	 IPO 

  

	12.1	 General 

  

	 	(a)	 Subject to Clause 12.1(b), the Parties acknowledge and agree that the Parties shall cause a public offering of
a mutually agreed portion of the Ordinary Shares on at least the Indonesian Stock Exchange, at a valuation to be approved by the Board of Directors (“IPO”) one (1) year after the later to occur of: 

 

	 	(i)	 the end of the Initial Period; and 

 

	 	(ii)	 completion of construction of the Grasberg Smelter, 

provided that suitable market conditions prevail such that the IPO will not directly cause a devaluation of the Shareholders’ respective
interests in the Company held via their Ordinary Shares (or of any other Shares that have been issued at that time) and at least 51% of Ordinary Shares are owned by Indonesian Persons following the IPO. 

 

	 	(b)	 To the extent that more than one Shareholder participates in the IPO, the Parties agree to discuss in good
faith the extent, if any, to which each Party will participate in the IPO. 

  

	 	(c)	 The IPO will be carried out on the basis that the governance regime between Freeport, Inalum and PTIPMM in
respect of the Company reflected in this Agreement can continue in all material respects, and, if such governance regime cannot continue in all material respects following an IPO, no IPO shall occur without the written consent of each Party (which
may be withheld by each Party in its sole discretion). 

  

	 	(d)	 The Parties acknowledge that, to the extent required by Applicable Law and the rules of any stock exchange on
which the Shares are intended to be admitted, the governance regime between Freeport, Inalum and PTIPMM in respect of the Company reflected in this Agreement will need to be disclosed in the prospectus relating to the IPO. 

  
 54 

	12.2	 Process 

The Shareholders shall sign such documents as may be necessary to effect the IPO. All payments received for the IPO shall be credited to the
Shareholders in proportion to their Percentage Interests. 
  

	13.	 DEVELOPMENT OF GRASBERG SMELTER 

 

	 	(a)	 The Shareholders acknowledge and agree it is the Company’s intention to: 

 

	 	(i)	 develop (including through joint venture arrangements) the Grasberg Smelter in accordance with Applicable Laws,
the IUPK and applicable Authorisations (including in respect of timing); 

  

	 	(ii)	 ensure the development of the Grasberg Smelter is on terms that provides commercial benefit to the Company; and

  

	 	(iii)	 fund the development of the Grasberg Smelter through third party financing. 

 

	 	(b)	 To the extent the Company develops the Grasberg Smelter through a joint venture or similar arrangement with any
third party, the Company must ensure it Controls the joint venture vehicle or arrangement (as applicable). 

  

	 	(c)	 Inalum Group shall be permitted to appoint a designee to serve on the project team for the Grasberg Smelter.

  

	 	(d)	 The Finance Committee shall review the proposed structure, financing and long-term sales contract for the
Grasberg Smelter prior to submitting such proposed structure, financing and long-term sales contract for Board of Directors approval. 

  

	14.	 SALES AND MARKETING  

 

	 	(a)	 During the Initial Period, sales and marketing activities shall be performed in accordance with the Services
Agreement, which Services Agreement will include obligations on the counterparty: 

  

	 	(i)	 that the Company will have the right for a representative of the Company (such representative to be nominated
by the Board of Directors) to be part of the team that performs the sales and marketing services under the Services Agreement (including the right to attend all meetings with counterparties or proposed to any product sales arrangements);

  

	 	(ii)	 to provide sales and marketing training to the Company; and 

  
 55 

	 	(iii)	 to provide the Company will full disclosure of all sales, marketing and financial data in respect of sales of
products by or on behalf of the Company. 

  

	 	(b)	 Prior to the end of the Initial Period, the Parties agree that the Company shall establish a sales and
marketing department with the capability to undertake and oversee the marketing of excess copper concentrate (above Grasberg Smelter consumption) with the assistance of Freeport marketing representatives, and oversee and administer any contract for
the supply of concentrate to the Grasberg Smelter with the assistance of Freeport marketing representatives. 

  

	15.	 SHAREHOLDERS’ ACTIVITIES OUTSIDE THE CONTRACT AREA  

 

	15.1	 Shareholders’ Activities Outside the Contract Area 

 

	 	(a)	 Every Shareholder shall have the right independently to engage in and receive full benefits from business
activities outside the Contract Area, whether or not in competition with the Company, without consulting the other Shareholders, and without prejudice to the generality of the foregoing, to the extent that the first-mentioned Shareholder requires
the use of the assets of the Company or support services provided by the Company, the other Shareholders agree to discuss and take under consideration having the Company make available and charge to the first-mentioned Shareholder the direct and
allocable costs of providing such assets and services; and 

  

	 	(b)	 no Shareholder shall have any obligation to the other Shareholders under this Agreement with respect to any
opportunity to acquire any property outside the Contract Area at any time, or within the Contract Area after the termination of this Agreement. 

  

	16.	 CONFIDENTIALITY 

 

	 	(a)	 Each Party agrees that Confidential Information furnished and to be furnished to it has been and may in the
future be made available in connection with such Shareholder’s investment in the Company. Each Party agrees that it shall use, and that it shall cause any Person to whom Confidential Information is disclosed pursuant to Clause 16(a)(i) to use,
the Confidential Information only in connection with the relevant Shareholder’s investment in the Company and not for any other purpose. Each Shareholder further acknowledges and agrees that it shall not disclose any Confidential Information to
any Person, except that Confidential Information may be disclosed: 

  

	 	(i)	 to Representatives of the Shareholder in the normal course of the performance of their duties or to any
financial institution providing credit to such Shareholder, provided that such Shareholder’s Representatives are bound to keep such disclosed Confidential Information confidential; 

  
 56 

	 	(ii)	 to the extent required by Applicable Law or any national securities exchange or made by any Shareholder in
connection with its or its Affiliates’ ordinary course public reporting to the extent required by any Applicable Law or the rules of any recognised stock exchange; 

 

	 	(iii)	 to any Person to whom such Shareholder is contemplating a Transfer of its Ordinary Shares; provided that such
potential transferee is advised of the confidential nature of such information and agrees to be bound by a confidentiality agreement consistent with the provisions hereof; 

 

	 	(iv)	 to any regulatory authority or rating agency to which such Shareholder or any of its Affiliates is subject or
with which it has regular dealings; provided that such authority or agency is advised of the confidential nature of such information; 

  

	 	(v)	 to the extent related to the tax treatment and tax structure of the transactions contemplated by this Agreement
(including all materials of any kind, such as opinions or other tax analyses that the Company, its Affiliates or its Representatives have provided to such Shareholder relating to such tax treatment and tax structure); provided that the foregoing
does not constitute an authorization to disclose the identity of any existing or future party to the transactions contemplated by this Agreement or their Affiliates or Representatives, or, except to the extent relating to such tax structure or tax
treatment, any specific pricing terms or commercial or financial information; or 

  

	 	(vi)	 if the prior written consent of the Shareholders has been obtained. 

 

	 	(b)	 Nothing contained herein shall prevent (i) the use (subject, to the extent possible, to a protective
order) of Confidential Information in connection with the assertion or defense of any claim by or against the Company or any Shareholder or (ii) any commissioner or member of the Board of Directors nominated by a Shareholder providing
Confidential Information to the Shareholder that nominated him or her or such Shareholder’s Representatives. 

  

	17.	 MISCELLANEOUS 

 

	17.1	 Indemnification  

 

	 	(a)	 Subject to Clause 17.1(b), the Company shall indemnify, and hold harmless, each Shareholder (and its Affiliates
and its and their respective directors, officers, managers, contractors, employees and agents) (collectively, the “Indemnified Parties”) from and against any and all damage, loss, liability and expense (including reasonable expenses
of investigation and reasonable attorneys’ fees and expenses) incurred by any of the Indemnified Parties before, on or after the date of this Agreement (collectively, the “Indemnified Liabilities”), arising out of any actual or
threatened action, cause of action, 

  
 57 

	 	
suit, proceeding or claim arising directly or indirectly out of such Indemnified Party’s ownership of Ordinary Shares, status as a stockholder or actual, alleged or deemed control or ability
to influence the Company or any of the Company Subsidiaries or the actual or alleged act or omission of any commissioner on the Board of Commissioners designated by such Indemnified Party (other than any such Indemnified Liabilities that arise out
of any breach of this Agreement by such Indemnified Party); provided that if and to the extent that the foregoing undertaking may be unavailable or unenforceable for any reason, the Company hereby agrees to make the maximum contribution to
the payment and satisfaction of each of the Indemnified Liabilities which is permissible under Applicable Law. The rights of any Indemnified Party to indemnification hereunder will be in addition to any other rights any such Person may have under
any other agreement or instruction to which such Indemnified Party is or becomes a party or is or otherwise becomes a beneficiary or under law or regulation or under the Articles or the organizational documents of any of the Company Subsidiaries and
shall extend to such Indemnified Party’s successors and assigns. Each of the Indemnified Parties shall be a third party beneficiary of the rights conferred to such Indemnified Party in this Clause 17. 

 

	 	(b)	 The Company shall not indemnify and hold harmless Freeport (and Affiliates and its and their respective its
directors, officers, managers, contractors, employees, and agents) or any party seeking to claim through Freeport, in respect of any damage, loss, liability and expense to the extent relating to the period before the date of this Agreement.

  

	17.2	 Governance and Compliance 

 

	 	(a)	 The Board of Commissioners, the Board of Directors, the Operating Committee, the Finance Committee, all other
committees of the Company established pursuant to this Agreement and Shareholders will exercise their respective rights to ensure that the Company maintains and adheres to adequate policies and procedures to promote good corporate governance,
including without limitation in respect of professional corporate conduct and environmental matters, corporate social responsibility, internal controls and compliance with Indonesian and international standards of lawful and ethical behaviour
(“Corporate Policies”). 

  

	 	(b)	 Any Shareholder, the Board of Directors, Board of Commissioners or committee may request to change the
Corporate Policies, which change will require approval of the Shareholders. To the extent the change is required to ensure the Company or any Shareholder is compliant with any Applicable Law, the Shareholders must vote in favour of the change,
except to the extent that the change would cause another Shareholder or the Company to be in breach of any Applicable Law. To the extent the Shareholders have approved a change to the Corporate Policies, the members of the Board of Directors and
Board of Commissioners (as applicable) must vote in favour of the change. 

  
 58 

	17.3	 Anti-bribery and Corruption 

 

	 	(a)	 Each of the Shareholders shall exercise all rights and powers available to it in relation to the Company so as
to endeavour to ensure that neither the Company nor any of its directors, officers, agents, employees, consultants and contractors, or any other person acting on its behalf has or will (a) offer, promise, pay, authorize, or take any act in
furtherance of any offer, promise, payment or authorization of payment of anything of value to any Person of Concern for the purpose of securing discretionary action or inaction or a decision of a Government Official(s), influence over discretionary
action of a Government Official(s), or an improper advantage; or (b) take any action otherwise inconsistent with or prohibited by the substantive prohibitions or requirements of any of the Anti-Bribery and Corruption Laws, in connection with
any matter relating to this Agreement. 

  

	 	(b)	 In the performance of their obligations under this Agreement, each Party will cause its officers, directors,
agents, employees, consultants, contractors, and other persons acting on their behalf, to (a) comply strictly with all Applicable Laws, including not offering, promising, paying, authorizing, or taking any act in furtherance of any offer,
promise, payment or authorization of payment of anything of value to any Person of Concern for the purpose of securing discretionary action or inaction or a decision of a Government Official(s), influence over discretionary action of a Government
Official(s), or an improper advantage; and (b) take no action otherwise inconsistent with or prohibited by the substantive prohibitions or requirements of any Applicable Law, in connection with any matter relating to this Agreement.

  

	 	(c)	 Each Party hereby agrees that in the performance of its obligations under this Clause 17.3, it shall take
appropriate steps to cause Company and its officers, directors, agents, employees, consultants and contractors to implement and maintain while this Agreement is in effect policies and procedures designed to ensure compliance with all Applicable
Laws, including the Anti-Bribery and Corruption Laws. 

  

	17.4	 Sanctions 

Each Party certifies that neither it nor any of its principals or owners, nor any of their respective subcontractors and their respective
principals or owners, nor any other Person who will provide services under this Agreement, are listed on the Specially Designated Nationals, Specially Designated Terrorists, and/or Specially Designated Narcotic Traffickers lists maintained by the
Office of Foreign Asset Controls, United States Department of Treasury or with whom a person bound by any similar sanctions administered or enforced by, or based upon the obligations and authorities of the United Nations Security Council, the
European Union, Her Majesty’s Treasury or other relevant sanctions authority. 

  
 59 

	17.5	 International Human Rights 

Each of the Shareholders shall exercise all rights and powers available to it in relation to the Company so as to ensure that the Company and
the Company Subsidiaries respect International Human Rights. The Company shall (i) promptly investigate any allegations of International Human Rights violations allegedly caused by Company or any subcontractor or subsidiary of the Company,
(ii) notify the complainant of the results of that investigation, and (iii) take appropriate remedial action where such investigations confirm International Human Rights violations have occurred. 

 

	17.6	 Representations, Warranties and Undertakings  

Each Shareholder makes the following representations and warranties to the other Shareholder as at the date of this Agreement: 

 

	 	(a)	 (status) it is a corporation validly existing under the laws of the place of its incorporation;

  

	 	(b)	 (power) it has the power to enter into and perform its obligations under this Agreement and to carry on
its business as now conducted or contemplated; 

  

	 	(c)	 (authorisations) it holds each Authorisation (and is complying with any conditions to which any
Authorisation is subject) that is necessary to: 

  

	 	(i)	 enable it to properly execute and perform its obligations under this Agreement; 

 

	 	(ii)	 ensure that this Agreement is legal, valid, binding and admissible in evidence; and 

 

	 	(iii)	 enable it to properly carry on its business as it is now being conducted; 

 

	 	(d)	 (binding obligations): this Agreement constitutes a legal, valid and binding obligation, enforceable in
accordance with its terms, except to the extent limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws of general application related to the enforcement of creditors’ rights generally and general principles of
equity; 

  

	 	(e)	 (transactions permitted): the execution, delivery and performance by it of this Agreement does not and
will not violate, breach or result in a contravention of: 

  

	 	(i)	 any law to which it or any of its property is subject or any order of any Government Authority that is binding
on it or any of its property; 

  

	 	(ii)	 contravene any Authorisation; 

 

	 	(iii)	 contravene any agreement binding on it or any of its property; 

  
 60 

	 	(iv)	 contravene the Articles; or 

 

	 	(v)	 require it to make any payment or delivery in respect of any financial accommodation before it would otherwise
be obliged to do so; 

  

	 	(f)	 (no other trusts): it is not entering into this Agreement as trustee of any trust or settlement;

  

	 	(g)	 (no litigation): there is no subsisting, pending or, to the knowledge of such Shareholder, threatened
litigation, arbitration, dispute or administrative proceeding in relation to it or any of its assets or undertakings which would reasonably be expected to have a materially adverse effect on the performance of any obligation under this Agreement;
and 

  

	 	(h)	 (winding up etc.): it is not subject to any bankruptcy, reorganization, debt arrangement or other
proceeding under any bankruptcy or insolvency law. 

  

	17.7	 Reliance by Parties 

Each Party acknowledges that each of the other Parties has entered into this document in reliance on the representations and warranties in, or
given under, this document. 
  

	17.8	 Partnership 

Nothing contained or implied in this Agreement shall constitute or be deemed to constitute an association, trust or partnership between, or
impose a trust or partnership duty, obligation or liability, on or with regard to the Parties and none of the Parties shall have any authority to bind or commit any other Party. 

 

	17.9	 Agency 

Except as otherwise expressly provided herein, nothing in this Agreement shall be construed so as to constitute any Party the agent or legal
representative of any other Party for any purpose. No Party has any right or authority to assume or create in any way any obligation of any kind or to make nay warranty or representation, express or implied, in the name or on behalf of any other
Party. 
  

	17.10	 Binding Effect, Assignability and Benefit 

 

	 	(a)	 This Agreement shall inure to the benefit of and be binding upon the Parties and their respective heirs,
successors and permitted assigns. Any Shareholder that ceases to own beneficially any Ordinary Shares shall cease to be bound by the terms hereof (other than Clauses 16, 17.11, 17.15 and 17.17). 

 

	 	(b)	 Neither this Agreement nor any right, remedy, obligation or liability arising hereunder or by reason hereof
shall be assignable by any Party pursuant to any Transfer of Ordinary Shares or otherwise, except to any Incoming Shareholder 

  
 61 

	 	
acquiring Ordinary Shares from any Shareholder in a Transfer in compliance with Clause 11.1. 

  

	 	(c)	 Except as otherwise set forth herein, nothing in this Agreement, expressed or implied, is intended to confer on
any Person other than the Parties, and their respective heirs, successors, legal representatives and permitted assigns, any rights, remedies, obligations or liabilities under or by reason of this Agreement. 

 

	17.11	 Notices 

All notices, requests and other communications to any Party shall be in writing and shall be delivered in person, mailed by certified or
registered mail, return receipt requested, or sent by facsimile transmission or email transmission so long as receipt of such email is requested and received: 

if to the Company to: 
 PT
Freeport Indonesia 
 Jl. HR. Rasuna Said Kav. X-7 No. 6 

Jakarta 12940 Indonesia 

Attention: Rob Schroeder 

                 Tony Wenas 

Email: rschroed@fmi.com 

            twenas@fmi.com 

with a copy to Freeport at the address listed below. 

if to Freeport, to: 

Freeport-McMoRan Inc. 
 333 North
Central Avenue 
 Phoenix, Arizona 85004 

Attention: Kathleen Quirk 
 Email:
kquirk@fmi.com 
 with a copy to: 

Davis Polk & Wardwell LLP 

450 Lexington Avenue 
 New York,
New York 10017 
 Attention: Marc O. Williams 

Fax: (212) 701-5800 

Email: marc.williams@davispolk.com 

and 
 Freeport-McMoRan Inc. 

333 North Central Avenue 

  
 62 

 Phoenix, Arizona 85004 

Attention: Douglas Currault 

Email: dcurraul@fmi.com 
 if to
Inalum or PTIPMM, to: 
 The Energy Building 

16th Floor Sudirman 
 Central
Business District 
 Lot 11A J1. Jend. 

Sudirman Kav. 52-53 

Jakarta, Indonesia 
 Attention:
Elizabeth Silalahi, General Counsel 
 Email: elizabeth.silahahi@inalum.id 

with copies to: 
 Ashurst LLP 

12 Marina Boulevard 
 #24-01, Marina Bay Financial Centre Tower 3 
 Singapore 018982 

Attention: Simon Brown 
 Fax: +65
6221 5484 
 Email: simon.brown@ashurst.com 

Oentoeng Suria & Partners 

Level 37, Equity Tower 

Sudirman Central Business District 

J1. Jend. Sudirman Kav. 52-53 

Attention: Ratih (Ipop) Nawangsari 

Fax: +65 62 212 903 5360 
 Email:
ratih.nawangsari@oentoengsuria.com 
 All notices, requests and other communications shall be deemed received on the date of receipt by the
recipient thereof if received prior to 5:00 p.m. in the place of receipt and such day is a business day in the place of receipt. Otherwise, any such notice, request or communication shall be deemed not to have been received until the next succeeding
business day in the place of receipt. Any notice, request or other written communication sent by facsimile transmission shall be confirmed by certified or registered mail, return receipt requested, posted within one Business Day, or by personal
delivery, whether courier or otherwise, made within two Business Days after the date of such facsimile transmissions. 
 Any Person that
becomes a Shareholder shall provide its address, fax number and email address for notice purposes to the Company, which shall promptly provide such information to each other Shareholder. 

  
 63 

 Any notice given to a Party in accordance with this Clause 17.11 will not be invalid if that
notice is not delivered to a Person entitled to receive a copy. 
  

	17.12	 Waiver, Amendment and Termination 

 

	 	(a)	 No provision of this Agreement may be amended, waived or otherwise modified except by an instrument in writing
executed by each of the Parties at the time of such proposed amendment or modification. In addition, any Party may waive any provision of this Agreement with respect to itself by an instrument in writing executed by the Party against whom the waiver
is to be effective. 

  

	 	(b)	 This Agreement shall terminate and be of no further force or effect upon the earliest to occur of:

  

	 	(i)	 only one person holds all shares of the Company; 

 

	 	(ii)	 the dissolution, liquidation or winding up of the Company; and 

 

	 	(iii)	 the mutual written agreement of all Parties. 

 

	 	(c)	 Any Shareholder that Transfers (in accordance with the terms of this Agreement) all of its, and owns no,
Ordinary Shares shall immediately cease to be a Shareholder and shall no longer be a party to this Agreement (in its capacity as a Shareholder); provided, however, that such Shareholder: 

 

	 	(i)	 shall not thereby be relieved of its liability for breach of this Agreement prior to such time or from any
obligations under this Agreement not related to its capacity as a Shareholder; 

  

	 	(ii)	 shall retain any rights with respect to a breach of this Agreement by any other Person prior to such time;

  

	 	(iii)	 shall retain the right to indemnification hereunder; and 

 

	 	(iv)	 shall not thereby be relieved of any of its obligations under Clause 11.1 or 16. 

 

	17.13	 Close-down 

  

	 	(a)	 The Company must not Close-down the operations of the Company without unanimous consent of the Shareholders.

  

	 	(b)	 Immediately following the agreement of the Shareholders to Close-down the operations of the Company, the
Company must carry out the activities required to shut down and rehabilitate the operations of the Company and the assets of the Company, which include: 

  
 64 

	 	(i)	 arranging to provide a Close-down plan and an estimate of the costs of the Close-down as at the anticipated
date of Close-down, including the cost of satisfying all rehabilitation obligations and outstanding or anticipated liabilities of the Company and the Company Subsidiaries (“Estimated Shutdown Costs”); and 

 

	 	(ii)	 taking steps to dispose of the assets of the Company (other than any assets of the Company or amount that must
be retained to satisfy rehabilitation obligations and outstanding liabilities). 

  

	 	(c)	 The Company must fund the costs of Close-down in the following order: 

 

	 	(i)	 first, with cash held by the Company and any cash deposited pursuant to government regulations, as such
funds are made available; 

  

	 	(ii)	 second, proceeds from the sale of the assets of the Company; and 

 

	 	(iii)	 third, if there remains a shortfall of funds to meet the costs of Close-down, issuing a cash call to the
Shareholders to fund the shortfall in proportion to their Percentage Interest. 

  

	 	(d)	 If after Close-down the Company retains any of its assets, such assets will be sold and the proceeds of sale,
together with any remaining case, shall be distributed to the Shareholders in proportion to their Percentage Interest after first satisfying out of any Shareholders’ share, any liabilities owed by that Shareholder to the Company.

  

	17.14	 Fees and Expenses 

All costs and expenses incurred in connection with the preparation of this Agreement, or any amendment or waiver hereof, and the transactions
contemplated hereby shall be paid by the Party incurring such costs or expenses. 
  

	17.15	 Default  

 

	 	(a)	 A Shareholder becomes a “Defaulter” if it fails to comply with any of its material obligations
under this Agreement, other than a failure to provide capital in accordance with Clause 10.2 (an “Event of Default”). 

  

	 	(b)	 The Company must notify all the Shareholders immediately after it becomes aware: 

 

	 	(i)	 of anything, which in the Company’s reasonable opinion, is likely to result in a Shareholder committing an
Event of Default or an Event of Default occurring in respect of a Shareholder; 

  

	 	(ii)	 that a Shareholder has committed an Event of Default or an Event of Default has occurred in respect of a
Shareholder; or 

  
 65 

	 	(iii)	 that a Shareholder has remedied an Event of Default, 

as applicable, and provide relevant details. 
  

	 	(c)	 If an Event of Default is committed by or occurs in respect of a Shareholder, the Company must (or any
Shareholder may), as soon as practicable after that party becomes aware of the Event of Default, provide to the Defaulter a notice setting out all relevant details of the Event of Default it is aware of. If the Party giving the notice, acting
reasonably, considers the Event of Default can be remedied, that party may require the Defaulter to remedy the Event of Default within 45 days after the Defaulter receives the Default Notice (the “Remedy Period”). If after the
Remedy Period, the party giving the notice considers the Event of Default as not having been remedied, the Parties may proceed to arbitration pursuant to Clause 17.17. 

 

	 	(d)	 Following the decision of the tribunal or any arbitrator appointed under Schedule 1 of the Rules in accordance
with Clause 17.17 and until such decision is fully paid or otherwise satisfied by the Defaulter, the Defaulter may receive notices of and attend meetings of the Board of Directors, Board of Commissioners, Operating Committee, Finance Committee, and
any other committee established under this Agreement, but unless otherwise agreed by each other Shareholder: 

  

	 	(i)	 any Shareholder Representative appointed by the Defaulter: 

 

	 	(A)	 shall not be taken into account in determining whether a quorum is present and for the purposes of meeting any
minimum quorum requirements for any meeting, of Shareholders, any meeting of the Board of Directors, Board of Commissioners or any other committee established under this Agreement will be taken as present, even if not in attendance; and

  

	 	(B)	 shall not be entitled to exercise any right to vote in respect of any matters and resolutions to be approved by
the Shareholders or before the applicable Board of Directors, Board of Commissioners or any other committee established under this Agreement; 

  

	 	(ii)	 no vote taken or matter decided without that Shareholder Representative of the Defaulter during that period
will be invalid for want of that Shareholder Representative’s vote; and 

  

	 	(iii)	 any rights of the Defaulter or the Shareholder Representative of the Defaulter under this Agreement (including
any rights to vote on any Reserved Matters) shall be suspended. 

  
 66 

	 	(e)	 The rights and remedies under this Clause 17.15 are in addition to, and do not take away from any other right
or remedy a Shareholder may have at law or in equity. 

  

	17.16	 Governing Law 

This Agreement shall be governed by, and construed in accordance with, the laws of the Republic of Indonesia, without regard to the conflicts
of laws rules thereof. The Parties waive the provisions of Article 1266 and 1267 of the Indonesian Civil Code to the extent necessary so that this Agreement can be terminated and damages or other compensation may be calculated and become payable
without the need for an order of any court. For the avoidance of doubt, the Parties agree that no changes in the laws of the Republic of Indonesia effected after the date hereof shall affect the rights or obligations of the Parties hereunder. 

 

	17.17	 Dispute Resolution 

All disputes arising out of or in connection with this Agreement, including any Event of Default in accordance with Clause 17.15, shall be
referred to and finally resolved by arbitration administered by the Singapore International Arbitration Centre (“SIAC”) in accordance with the Arbitration Rules of SIAC for the time being in force, which rules are deemed to be
incorporated by reference in this Clause 17.17 (“Rules”). The claimant and the respondent shall nominate one arbitrator each, and the third arbitrator shall be nominated jointly by the two Party-appointed arbitrators. The seat of
the arbitration shall be Singapore. The place of the arbitration shall be Singapore. The language of the arbitration shall be English. Notwithstanding Clause 17.15, this Clause 17.17 shall be governed by and interpreted in accordance with Singapore
law. Clause 18.14 shall be governed by and interpreted in accordance with Singapore law. Each Party renounces any right it may otherwise have to appeal or seek relief from the award or any decision of the arbitrators contained therein and agrees
that, in accordance with Article 60 of Law No. 30 of 1999 of the Republic of Indonesia on Arbitration and Alternative Dispute Resolution (the “Arbitration Law”), no Party shall appeal to any court from the award or decision of
the arbitrators contained therein. Each Party waives the applicability of Article 48 of the Arbitration Law and agrees that arbitration need not be completed within a specific time. 

 

	17.18	 Settlement of claims and lawsuits 

The Company shall prosecute and defend, but not initiate without approval of the Shareholders any litigation or administrative proceedings
arising out of the operations of the Company the outcome of which would reasonably be expected to have a Material Adverse Effect on the Company. 

  
 67 

	17.19	 Counterparts and Effectiveness 

This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, with the same effect as if the
signatures thereto and hereto were upon the same instrument. Until and unless each Party has received a counterpart hereof signed by the other Party, this Agreement shall have no effect and no Party shall have any right or obligation hereunder
(whether by virtue of any other oral or written agreement or other communication). 
  

	17.20	 Entire Agreement 

This Agreement constitutes the entire agreement in relation to the subject matter hereof and supersedes all prior and contemporaneous
agreements and understandings, both oral and written, among the Parties with respect to the subject matter hereof. 
  

	17.21	 Severability 

If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction or other authority to be
invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated so long as the economic or legal
substance of the transactions contemplated hereby is not affected in any manner materially adverse to any Party. Upon such a determination, the Parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the
Parties as closely as possible in an acceptable manner so that the transactions contemplated hereby be consummated as originally contemplated to the fullest extent possible. 
  

	17.22	 Further Assurances 

Each Party agrees from time to time to execute and deliver any further documents and instruments and do or refrain from doing all such further
acts and things as may from time to time reasonably be requested by the other Parties to carry out the terms of this Agreement. 
  

	17.23	 Sovereign Enforcement Matters 

 

	 	(a)	 To the extent that any member of the Inalum Group or Freeport may be entitled in any state or jurisdiction to
claim or benefit from any immunity (whether characterized as state immunity, sovereign immunity, act of state or otherwise) now or hereafter for itself or any of its property or assets (which it now has or may hereafter acquire) in respect of its
obligations under this Agreement from service of process or other documents relating to proceedings, jurisdiction, suit, judgement, execution, attachment (whether before award or judgement, in aid or execution or otherwise) or legal process or to
the extent that in any such jurisdiction there may be attributed to it or any of its property or assets such immunity (whether or not claimed), each member of the Inalum Group and Freeport expressly, unconditionally and irrevocably agrees not

  
 68 

	 	
to claim, invoke or permit to be invoked on it or its property or assets’ behalf or for it or its property or assets’ benefit and hereby expressly, unconditionally and irrevocably
waives such immunity to the fullest extent permitted by the laws of such jurisdiction. 

  

	 	(b)	 Each member of the Inalum Group and Freeport consents generally in respect of any proceedings to the giving of
any relief or the issue of any process in connection with the proceedings, including the enforcement or execution against any property or assets whatsoever (irrespective of its use or intended use) of any order or judgement which may be made or
given in the proceedings. 

  

	 	(c)	 Each member of the Inalum Group and Freeport irrevocably and unconditionally acknowledges that the execution,
delivery and performance of this Agreement constitutes private and commercial (and not public) acts of such member of the Inalum Group or Freeport, respectively. 

 

	 	(d)	 For purposes of this Clause 17.23, the term “Inalum Group” shall include only Inalum and PTIPMM and
not any of their respective Affiliates, except to the extent any such Affiliate is a transferee of Ordinary Shares, in which case the provisions of this Clause 17.23 shall apply to such Affiliate. 

 

	17.24	 Governing Language 

 

	 	(a)	 For the purposes of compliance with Law No. 24 of the Republic of Indonesia on the National Flag,
Language, Coat of Arms and National Anthem, the Inalum Group and Freeport agree to translate and execute an Indonesian language version of this Agreement and any instrument or other document referred to in this Agreement to which an Indonesian
person is a party or signatory, or any amendment to such agreement, instrument or document (Ancillary Documents) other than those which are already made and executed in Indonesian language, promptly in accordance with the terms of this Agreement.

  

	 	(b)	 The Inalum Group and Freeport agree that: 

 

	 	(i)	 the Indonesian language version of this Agreement (other than those which are already made and executed in
Indonesian language only), when executed, will be deemed to be effective and valid from the date of the English language version, and both the English language version and the Indonesian language version will be equally authentic. The Inalum Group
and Freeport further agree that the execution of the Indonesian language of this Agreement must be undertaken at the latest within 60 days after the date of this Agreement; 

 

	 	(ii)	 in the event of any inconsistency or different interpretation between the Indonesian language version and the
English language version of such dual-language documents, the Indonesian language version is deemed 

  
 69 

	 	
to be automatically amended (with effect from the date of the English language version) to make the relevant part of the Indonesian language version consistent with the relevant part of the
English language version; 

  

	 	(iii)	 the costs and expenses in relation to: 

 

	 	(A)	 the translation of the English language version into an Indonesian language version; 

 

	 	(B)	 the preparation and execution of the Indonesian language version; and 

 

	 	(C)	 any amendments of the Indonesian language version to conform with the English language version as contemplated
by this Clause 17.24, 

 shall be borne 50% by Inalum, on the one hand, and 50% by Freeport, on the other hand (other than
costs incurred by a party in review and commenting on such Indonesian language version, which shall be borne by the party incurring such costs); and 
  

	 	(c)	 each of the Inalum Group and Freeport: 

 

	 	(i)	 acknowledges that, with its agreement, this Agreement has been negotiated in the English language;

  

	 	(ii)	 represents that it has read and fully understands the contents and consequences of this Agreement;

  

	 	(iii)	 represents that it has made and entered into this Agreement freely and without duress; 

 

	 	(iv)	 represents that it has received independent legal advice with regard to this Agreement; and

  

	 	(v)	 undertakes that it will not challenge the validity of this Agreement based on any failure to comply with Law
No. 24 of the Republic of Indonesia on the National Flag, Language, Coat of Arms and National Anthem or the implementing Presidential Regulation (when issued). 

[Signature page follows] 

  
 70 

 IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed by their
respective authorized officers as of the day and year first above written. 
  

			
	PT FREEPORT INDONESIA
		
	By:	 	 /s/ Robert Schroeder

		 	Name: Robert Schroeder

		 	Title:
		
	By:	 	 /s/ Clayton Wenas

		 	Name: Clayton Wenas
		 	Title:
	
	FREEPORT-MCMORAN INC.
		
	By:	 	 /s/ Kathleen Quirk

		 	Name: Kathleen Quirk
		 	Title:
	
	PT INDONESIA PAPUA METAL DAN MINERAL
		
	By:	 	 /s/ Ricky Gunawan

		 	Name: Ricky Gunawan
		 	Title:
		
	By:	 	  

		 	Name:
		 	Title:
	
	PT INDONESIA ASAHAN ALUMINIUM (PERSERO)
		
	By:	 	 /s/ Budi G. Sadikin

		 	Name: Budi G. Sadikin
		 	Title:

 [Signature Page to Shareholders Agreement] 

  
 71 

 SCHEDULE 3 

Articles 
  

			
	AMENDED & RESTATED	  	PERUBAHAN & PERNYATAAN KEMBALI
		
	ARTICLES OF ASSOCIATION OF PT. FREEPORT INDONESIA	  	ANGGARAN DASAR PT. FREEPORT INDONESIA
		
	 Article 1

NAME AND DOMICILE
	  	 Pasal 1

NAMA DAN TEMPAT KEDUDUKAN

		
	 1.  This limited liability company shall bear the name of “PT FREEPORT
INDONESIA” (hereinafter shall be referred to in these Articles of Association as the “Company”), domiciled in South Jakarta.
	  	 1.  Perseroan terbatas ini bernama “PT FREEPORT INDONESIA” (selanjutnya
dalam Anggaran Dasar ini disebut dengan “Perseroan”), berkedudukan di Jakarta Selatan.

		
	 2.  The name “Freeport” shall be used by the Company based on the approval
of FREEPORT- MCMORAN INC.
	  	 2.  Nama “Freeport” dipergunakan oleh Perseroan berdasarkan persetujuan
FREEPORT- MCMORAN INC.

		
	 3.  The Company may open branches or representatives in other locations, within or
outside the territory of the Republic of Indonesia as may be decided by the Board of Directors.
	  	 3.  Perseroan dapat membuka cabang atau perwakilan di tempat lain, baik di dalam
maupun di luar Wilayah Republik Indonesia sebagaimana yang ditetapkan oleh Direksi.

		
	 Article 2

DURATION OF THE COMPANY
	  	 Pasal 2

JANGKA WAKTU BERDIRINYA PERSEROAN

		
	The Company is established for an unlimited period, as of the twenty seventh day of December one thousand nine hundred ninety one (27-12-1991), with due
observance to the Law Number 25 year two thousand seven (Law No. 25 of 2007) concerning Capital Investment.	  	Perseroan ini didirikan untuk jangka waktu yang tidak terbatas, dimulai pada tanggal dua puluh tujuh Desember seribu sembilan ratus sembilan puluh satu
(27-12-1991), dengan memperhatikan Undang-Undang Nomor 25 tahun dua ribu tujuh (Undang-Undang No. 25 Tahun 2007) tentang Penanaman Modal.
		
	 Article 3

OBJECTIVES AND PURPOSES AND BUSINESS ACTIVITIES
	  	 Pasal 3

MAKSUD DAN TUJUAN SERTA KEGIATAN USAHA

		
	 1.  The Company purpose and objective shall be to engage in the mining activities of
copper, gold and silver and other associated minerals.
	  	 1.  Maksud dan tujuan Perseroan adalah bergerak dalam bidang pertambangan tembaga,
emas dan perak serta mineral ikutannya.

		
	 2.  In order to achieve the above-mentioned objective and purpose, the
Company
	  	 2.  Untuk mencapai maksud dan tujuan tersebut di atas, Perseroan dapat

  
 74 

			
	 may carry out the following business activities:
	  	 melaksanakan kegiatan usaha sebagai berikut:

		
	 (a)   to engage all kinds of exploration, mining, processing, operations in all
stages and storage of copper, gold, silver, and associated ores, and mineral, metals and other mineral products;
	  	 (a)   mengusahakan segala macam eksplorasi, penambangan, pengolahan,
pengoperasian pada semua tahap dan penyimpanan bijih-bijih tembaga, emas, perak dan bijih lainnya yang berkaitan serta mineral, logam dan hasil produksi pertambangan lainnya;

		
	 (b)   to market and sell all products and
by-product of the activities mentioned in paragraph (a) of this article, including their exportation at its own expense or account of third parties without prejudice to the required license, if any, from the
authorities;
	  	 (b)   memasarkan dan menjual segala hasil produksi dan hasil sampingan dari
kegiatan-kegiatan tersebut pada huruf (a) ayat ini, termasuk mengekspornya, atas biaya Perseroan sendiri atau untuk kepentingan pihak ketiga, tanpa mengurangi izin-izin yang diperlukan, jika ada, dari pihak
yang berwenang;

		
	 (c)   to import all that is necessary for the realization of the aforementioned
activities in paragraph (a) of this article without prejudice to the required license, if any, from the authorities;
	  	 (c)   mengimpor segala sesuatu yang diperlukan untuk dapat melaksanakan
kegiatan-kegiatan tersebut pada huruf (a) di atas tanpa mengurangi izin-izin yang diperlukan, jika ada, dari pihak yang berwenang;

		
	 (d)   to carry on and develop the operations of the Company in accordance with
the Company’s long term investment plan (“LTIP”), the annual operating plan and annual financial plan for the benefit of the shareholders in accordance with the IUPK;
	  	 (d)   melaksanakan dan mengembangkan operasional Perseroan sesuai dengan rencana
investasi jangka panjang (“LTIP”), rencana operasional tahunan dan rencana keuangan tahunan untuk keuntungan pemegang saham sesuai dengan IUPK;

		
	 (e)   to develop and exploit, for the benefit of the shareholders, the assets of
the Company and the Company’s subsidiaries to produce and sell product and to declare dividends in accordance with the dividend policy;
	  	 (e)   mengembangkan dan mengeksploitasi, untuk keuntungan pemegang saham, aset
dari Perseroan dan anak usaha Perseroan untuk memproduksi dan menjual produk dan untuk

  
 75 

			
		
		  	 mendeklarasikan dividen sesuai dengan kebijakan dividen;

		
	 (f)   to maximise the value of the operations of the Company and distribute
dividends in accordance with the dividend policy; and
	  	 (f)   memaksimalkan nilai operasional Perseroan dan mendistribusikan dividen
seusai dengan kebijakan dividen; dan

		
	 (g)   to conduct any other activity agreed unanimously by the shareholders
and undertaken by the Company or any of the Company’s subsidiaries.
	  	 (g)   melaksanakan aktivitas lain yang disetujui secara penuh oleh pemegang
saham dan dilakukan oleh Perseroan atau anak usaha Perseroan.

		
	 Article 4

CAPITAL
	  	 Pasal 4

MODAL

		
	 1.  The authorized capital of the Company amounts Rp. 75,450,850,000 (seventy five
billion four hundred fifty million eight hundred and fifty thousand Rupiah) equal to US$37,915,000 (thirty seven million nine hundred and fifteen thousand United States Dollars), divided into 379,150 (three hundred seventy nine thousand one hundred
and fifty) shares, each share having a par value of Rp. 199,000 (one hundred ninety nine thousand Rupiah) equal to US$100 (one hundred United States Dollars).
	  	 1.  Modal dasar Perseroan berjumlah Rp. 75.450.850.000 (tujuh puluh lima milyar
empat ratus lima puluh juta delapan ratus lima puluh ribu Rupiah) setara dengan US$37. 915. 000 (tiga puluh tujuh juta sembilan ratus lima belas ribu Dolar Amerika Serikat), terbagi atas 379.150 (tiga ratus tujuh puluh sembilan ribu seratus lima
puluh) saham, masing-masing saham bernilai nominal Rp. 199.000 (seratus sembilan puluh sembilan ribu Rupiah) setara dengan US$100 (seratus Dolar Amerika Serikat).

		
	 2.  Of the above authorized capital have been issued and paid up 379,150 (three
hundred seventy nine thousand one hundred and fifty) shares or in the aggregate amount of Rp. 75,450,850,000 (seventy five billion four hundred fifty million eight hundred and fifty thousand Rupiah) or equivalent to US$37,915,000 (thirty seven
million nine hundred and fifteen thousand United States Dollars) by all the shareholders, which its details and nominal value will be stated at the end of this deed.
	  	 2.  Dari modal dasar tersebut telah ditempatkan dan disetor penuh sejumlah 379.150
(tiga ratus tujuh puluh sembilan ribu seratus lima puluh) saham dengan nilai nominal seluruhnya sebesar Rp. 75.450.850.000 (tujuh puluh lima milyar empat ratus lima puluh juta delapan ratus lima puluh ribu Rupiah) atau setara dengan US$37. 915. 000
(tiga puluh tujuh juta sembilan ratus lima belas ribu Dolar Amerika Serikat) oleh semua pemegang saham, yang rincian serta nilai nominal sahamnya akan disebutkan sebelum akhir akta ini.

		
	 3.  Shares that are in deposits, i.e. shares
	  	 3.  Saham yang ada dalam simpanan,

  
 76 

			
	 that are unsubscribed/ unissued shares in portfolio, these shares will be issued by the Company in accordance with
the capital requirement of the Company, with the approval of the GMS.
	  	 yaitu saham dalam portepel yang belum diambil bagian/dikeluarkan, saham-saham ini akan dikeluarkan oleh Perseroan
sesuai dengan persyaratan modal Perseroan, dengan persetujuan RUPS.

		
	        The quorum and the resolution of the GMS in
approving the issuance of shares must meet the requirements set out in article 10 of these Articles of Association.
	  	        Kuorum dan keputusan RUPS untuk menyetujui
pengeluaran saham harus memenuhi persyaratan dalam pasal 10 Anggaran Dasar ini.

		
	        If the Board of Directors believes that the Company
requires the issuance of shares that are still in deposits, after obtaining the required approvals under the Shareholders Agreement, the Board of Directors will provide a written offer to the shareholders regarding the number of shares to be issued
and the price.
	  	        Apabila Direksi meyakini bahwa Perseroan
memerlukan pengeluaran saham-saham yang masih dalam simpanan, setelah memperoleh persetujuan-persetujuan yang diperlukan berdasarkan Perjanjian Pemegang Saham, Direksi akan memberikan penawaran tertulis kepada para pemegang saham sehubungan dengan
jumlah saham yang akan dikeluarkan dan harganya.

		
	        The shareholders whose names are recorded in the
Register of Shareholders shall have a pre-emptive right to subscribe for the shares to be issued within a period of 14 (fourteen) days from the date of the offer and each shareholder shall be entitled to
subscribe in proportion with their respective shareholding.
	  	        Para pemegang saham yang namanya tercatat dalam
Daftar Pemegang Saham mempunyai hak terlebih dahulu untuk mengambil bagian atas saham yang hendak dikeluarkan itu dalam jangka waktu 14 (empat belas) hari sejak tanggal penawaran dan masing-masing pemegang saham berhak mengambil bagian seimbang
dengan jumlah saham yang mereka miliki (proporsional).

		
	        If after the offer there are shares which remain to
be subscribed, the Board of Directors shall be entitled to offer such remaining shares to any other interested shareholders.
	  	        Apabila setelah dilakukan penawaran ternyata masih
ada sisa saham yang belum diambil bagian, maka Direksi berhak menawarkan sisa saham tersebut kepada pemegang saham lain yang berminat.

		
	        If after the 14 (fourteen) days period from the date
of the offer there are shares which are not subscribed the shareholders, the Board of Directors shall be entitled to offer such remaining shares to any other party.
	  	        Apabila setelah lewat jangka waktu 14 (empat
belas) hari terhitung sejak tanggal penawaran masih ada sisa saham yang tidak diambil bagian oleh pemegang saham, Direksi berhak secara bebas menawarkan sisa saham tersebut kepada pihak lain.

  
 77 

			
	 Article 5

SHARES
	  	 Pasal 5

SAHAM

		
	 1.  All shares of the Company shall be registered shares.
	  	 1.  Semua saham Perseroan adalah saham atas nama.

		
	 2.  Indonesian Citizen, Foreign Citizen, Indonesian Legal Entity or Foreign Legal
Entity shall be allowed to own the shares and exercise their rights over the shares.
	  	 2.  Warga Negara Indonesia, Warga Negara Asing, Badan Hukum Indonesia atau Badan Hukum
Asing diperbolehkan untuk memiliki saham-saham dan menggunakan hak mereka atas saham-saham.

		
	 3.  Evidence of ownership of shares may be in the form of a share
certificate.
	  	 3.  Bukti pemilikan saham dapat berupa suatu surat saham.

		
	 4.  In the event that the Company does not issue share certificates, then the share
ownership may be evidenced by a statement or a note by the Company.
	  	 4.  Dalam hal Perseroan tidak menerbitkan surat saham, pemilikan saham dapat
dibuktikan dengan surat keterangan atau catatan yang dikeluarkan oleh Perseroan.

		
	 5.  If share certificates are issued, then each share is presented by a share
certificate.
	  	 5.  Jika dikeluarkan surat saham, maka untuk setiap saham diberi sehelai surat
saham.

		
	 6.  Collective share certificate may be issued as evidence of ownership of 2 (two) or
more shares by one shareholder.
	  	 6.  Surat kolektif saham dapat diterbitkan sebagai bukti pemilikan 2 (dua) atau lebih
saham yang dimiliki oleh seorang pemegang saham.

		
	 7.  The share certificates shall at least set out the following:
	  	 7.  Pada surat saham harus dicantumkan sekurangnya:

		
	 (a)   Name and address of the shareholder;
	  	 (a)   Nama dan alamat pemegang saham;

		
	 (b)   Serial number of the share certificate;
	  	 (b)   Nomor surat saham;

		
	 (c)   Nominal value of a share; and
	  	 (c)   Nilai nominal saham; dan

		
	 (d)   Date of issuance of share certificate.
	  	 (d)   Tanggal penerbitan surat saham.

		
	 8.  The collective share certificates shall at least set out the following:
	  	 8.  Pada surat kolektif saham sekurangnya harus dicantumkan:

		
	 (a)   Name and address of the shareholder;
	  	 (a)   Nama dan alamat pemegang saham;

		
	 (b)   Serial number of the collective share certificate;
	  	 (b)   Nomor surat kolektif saham;

  
 78 

			
	 (c)   Serial number of share certificate and total of share;
	  	 (c)   Nomor surat saham dan jumlah saham;

		
	 (d)   Nominal value of a share; and
	  	 (d)   Nilai nominal saham; dan

		
	 (e)   Date of issuance of a collective share certificate.
	  	 (e)   Tanggal penerbitan surat saham kolektif.

		
	 9.  The company shall only acknowledge one person or one legal entity as the owner of
one share.
	  	 9.  Perseroan hanya mengakui seorang atau satu badan hukum sebagai pemilik dari satu
saham.

		
	 10.  If a share, for any reason whatsoever, becomes owned by several persons and/or
legal entities then the joint holders shall appoint one of them or other party as their representative and only such representative shall be entitled to carry out and to use all the rights that are given by the law in respect of the said
shares.
	  	 10.  Apabila saham karena sebab apapun menjadi milik beberapa orang dan/atau badan
hukum, maka mereka yang memiliki bersama-sama itu diwajibkan untuk menunjuk seorang diantara mereka atau pihak lain sebagai perwakilan mereka dan hanya perwakilan tersebut sajalah yang berhak melaksanakan dan mempergunakan hak yang diberikan oleh
hukum atas saham tersebut.

		
	 11.  As long as the provisions contained in paragraph 10 of this article have not been
complied with, the shareholders shall not be entitled to vote at the GMS, and whereas the dividend payment for such share shall be suspended.
	  	 11.  Selama ketentuan dalam ayat 10 pasal ini belum dilaksanakan, maka para pemegang
saham tersebut tidak berhak mengeluarkan suara dalam RUPS, dan pembayaran dividen untuk saham itu ditangguhkan.

		
	 12.  A shareholder shall, by law, abide by these Articles of Association and all the
resolutions lawfully adopted at the GMS and the prevailing laws and regulations.
	  	 12.  Seorang pemegang saham harus, menurut hukum, tunduk kepada Anggaran Dasar dan
kepada semua keputusan yang diambil dengan sah dalam RUPS serta peraturan perundang-undangan yang berlaku.

		
	 13.  The share certificate and collective certificates shall be signed by 2 (two)
members of the Board of Directors, with due observance to the prevailing laws and regulations.
	  	 13.  Surat saham dan surat kolektif saham harus ditandatangani oleh 2 (dua) orang
anggota Direksi, dengan memperhatikan peraturan perundangan-undangan yang berlaku.

		
	 Article 6

REPLACEMENT OF SHARE CERTIFICATE
	  	 Pasal 6

PENGGANTI SURAT SAHAM

		
	 1.  If a share certificate is damaged or no longer usable, then the Board of Directors
shall, upon request of the relevant shareholder, issue a substitute
	  	 1.  Apabila surat saham rusak atau tidak dapat dipakai lagi, maka Direksi akan, atas
permintaan pemegang saham yang berkepentingan,

  
 79 

			
		
	 share certificate, after the damaged or unusable certificate is returned to the Board of Directors.
	  	 mengeluarkan surat saham pengganti, setelah surat saham yang rusak atau tidak dapat dipakai tersebut diserahkan kembali
kepada Direksi.

		
	 2.  The share certificate as stated in paragraph 1 of this article will then be
destroyed and such occurrence will be recorded in the minutes by the Board of Directors and to be subsequently reported at the next GMS.
	  	 2.  Surat saham sebagaimana dimaksud dalam ayat 1 pasal ini akan dimusnahkan dan
tindakan tersebut akan dicatat dalam berita acara oleh Direksi untuk dilaporkan dalam RUPS berikutnya.

		
	 3.  If a share certificate is lost, the Board of Directors will, upon request of the
relevant shareholder, issue a substitute share certificate if, in the opinion of the Board of Directors, such loss has been sufficiently proven and with such guarantee as may be considered necessary by the Board of Directors in each particular
event.
	  	 3.  Apabila surat saham hilang, maka Direksi akan, atas permintaan pemegang saham yang
berkepentingan, mengeluarkan surat saham pengganti apabila, menurut pendapat Direksi, kehilangan tersebut telah cukup dibuktikan dan dengan jaminan yang mungkin dipandang perlu oleh Direksi dalam setiap peristiwa tertentu.

		
	 4.  Upon the issuance of the substitute share certificate in accordance with the
provisions of this article, the original certificate shall no longer be valid as against the Company.
	  	 4.  Setelah pengganti surat saham tersebut dikeluarkan sesuai dengan ketentuan pasal
ini, maka asli surat saham tidak berlaku lagi terhadap Perseroan.

		
	 5.  All expenses that have been incurred for the issuance of the substitute share
certificate shall be borne by the relevant shareholder who has the interest to obtain the substitute share certificate.
	  	 5.  Semua biaya untuk pengeluaran pengganti surat saham itu ditanggung oleh pemegang
saham terkait yang berkepentingan untuk memperoleh surat saham pengganti.

		
	 6.  The provisions of this article 6 shall be mutatis mutandis applicable to
the issuance of a substitute collective share certificate.
	  	 6.  Ketentuan dalam pasal 6 ini juga berlaku mutatis mutandis bagi pengeluaran
pengganti surat kolektif saham.

		
	 Article 7

TRANSFER OF SHARES
	  	 Pasal 7

PEMINDAHAN HAK ATAS SAHAM

		
	 1.  Any transfer of shares shall be based on a deed of transfer signed by the
transferor and the transferee or their legal proxy.
	  	 1.  Pemindahan hak atas saham harus berdasarkan akta pemindahan hak yang
ditandatangani oleh yang memindahkan dan yang menerima pemindahan atau kuasanya yang sah.

		
	        The document on the transfer of shares must be in a
form determined by and acceptable to the Board of Directors except as otherwise required by law.
	  	        Dokumen tentang pemindahan hak atas saham harus dalam
bentuk yang ditentukan dan dapat diterima oleh Direksi, kecuali jika ketentuan

  
 80 

			
		
		  	 hukum mewajibkan yang lain.

		
	 2.  The deed of transfer of shares referred to in paragraph 1 of this article or its
copy shall be submitted to the Company.
	  	 2.  Akta pemindahan hak atas saham sebagaimana dimaksud dalam ayat 1 pasal ini atau
salinannya disampaikan kepada Perseroan.

		
	 3.  In case of a transfer of one or more shares, the original owner registered in the
Company’s shareholders registry shall be considered as the owner thereof until the name of the new owner is registered.
	  	 3.  Jika terjadi pemindahan hak atas satu saham atau lebih, maka pemilik asal yang
terdaftar dalam daftar pemegang saham Perseroan akan tetap dianggap sebagai pemilik saham atas saham-saham yang bersangkutan sampai nama pemilik baru didaftarkan.

		
	 4.  Each transfer of share shall be recorded in the register of shareholders as well
as on the transferred share certificate(s), which records must be signed in writing or signed by way of facsimile signature by 2 (two) members of the Board of Directors with due observance to the prevailing laws and regulations.
	  	 4.  Setiap pemindahan hak atas saham akan dicatatkan baik dalam daftar pemegang saham
maupun pada surat saham yang dipindahkan hak, pendaftaran mana harus ditandatangani secara tertulis oleh atau ditandatangani melalui faksimili oleh 2 (dua) orang anggota Direksi, dengan memperhatikan peraturan perundang-undangan yang
berlaku.

		
	 5.  Subject to the provisions of these Articles of Association and any amendments
thereto, the Shareholders Agreement or stock purchase/sale agreement which has been put on file with the Board of Directors and approved in the GMS and except as otherwise required by law, the Board of Directors by giving reason thereof may refuse
to register the transfer of shares in the share register of the Company if the procedures determined by the Board of Directors are not met or if one or more of the requirements for transfer of shares are not fulfilled.
	  	 5.  Tunduk pada ketentuan Anggaran Dasar ini dan perubahannya, Perjanjian Pemegang
Saham atau perjanjian jual/beli saham yang telah didaftarkan pada Direksi dan disetujui oleh RUPS dan kecuali jika hukum mewajibkan cara yang lain, maka Direksi dengan menyebutkan alasannya dapat menolak untuk mendaftarkan pemindahan hak atas saham
dalam daftar pemegang saham apabila prosedur yang telah ditetapkan oleh Direksi tidak diikuti atau salah satu atau lebih persyaratan untuk pemindahan hak atas saham tidak terpenuhi.

		
	 6.  Notwithstanding anything to the contrary in these Articles of Association, the
Board of Directors (i) may not refuse to register a transfer of shares made in accordance with the
	  	 6.  Tanpa mengecualikan ketentuan yang bertentangan dalam Anggaran Dasar ini, Direksi
(i) tidak dapat menolak untuk mendaftarkan pemindahan hak atas saham yang dilakukan sesuai dengan Perjanjian Pemegang Saham dan peraturan perundang-undangan yang berlaku, dan (ii) tidak dapat
mendaftarkan

  
 81 

			
		
	 Shareholders Agreement and the prevailing laws and regulations, and (ii) may not register a transfer of shares
that is not made in accordance with the Shareholders Agreement.
	  	 pemindahan hak atas saham yang tidak dilakukan sesuai dengan Perjanjian Pemegang Saham.

		
	 7.  If the Board of Directors declines to register any transfer of shares, it shall
within 30 (thirty) days after the date the request for such registration was received by the Board of Directors, send to the prospective transferor and transferee a notice of such refusal.
	  	 7.  Jika Direksi menolak untuk mendaftarkan suatu pemindahan hak atas saham, Direksi
berkewajiban dalam waktu 30 (tiga puluh) hari setelah tanggal permintaan pendaftaran tersebut diterima oleh Direksi, untuk mengirimkan baik kepada calon pihak yang akan memindahkan hak atas saham maupun kepada calon pihak yang akan menerima
pemindahan hak atas saham suatu pemberitahuan tentang penolakan tersebut.

		
	 8.  Transfers of shares may only be effected if all of the provisions of these
Articles of Association and the Shareholders Agreement have been complied with, without prejudice to the prevailing laws and regulations.
	  	 8.  Pemindahan hak atas saham hanya diperbolehkan apabila semua ketentuan dalam
Anggaran Dasar ini dan Perjanjian Pemegang Saham telah dipenuhi, dengan tidak mengurangi peraturan perundang-undangan yang berlaku.

		
	 9.  Commencing as of the day of the notice for a GMS until the day of the GMS, no
transfers of rights of shares shall be effected.
	  	 9.  Mulai hari panggilan RUPS sampai dengan hari RUPS, pemindahan hak atas saham tidak
diperkenankan.

		
	 10.  A person or party who obtains shares due to inheritance, or dissolution of a
shareholder or due to any other reasons which cause the ownership of shares to be transferred in accordance with the law, by submitting evidence regarding the obtaining of such shares, he/she may submit a written request to the Board of Directors to
be recorded as a shareholder.
	  	 10.  Orang atau pihak yang memperoleh hak atas saham akibat pewarisan, atau pembubaran
pemegang saham atau karena sebab lain yang menyebabkan pemilikan saham beralih menurut hukum, dengan mengajukan bukti tentang perolehan hak atas saham tersebut, dapat mengajukan permohonan tertulis kepada Direksi untuk didaftarkan sebagai pemegang
saham.

		
	 11.  Subject to paragraph 7 of this article, the registration referred to in paragraph
11 of this article may be done only if the Board of Directors accept such evidence, without prejudice to the provisions of these Articles of Association and approval from the competent authority (if necessary).
	  	 11.  Dengan tunduk pada ayat 7 pasal ini, pendaftaran sebagaimana dimaksud dalam ayat
10 pasal ini dapat dilakukan hanya apabila Direksi menerima bukti tersebut, tanpa mengurangi ketentuan dalam Anggaran Dasar ini dan persetujuan dari instansi yang berwenang (jika diperlukan).

  
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	 12.  As long as the provision set forth in paragraph 11 of this article has not been
complied with, the vote cast in the GMS for the said share shall be deemed as invalid, and whereas the payment of the dividends on the said share shall be suspended.
	  	 12.  Selama ketentuan dalam ayat 11 pasal ini belum dipenuhi, suara yang diberikan
dalam RUPS untuk saham tersebut akan dianggap tidak sah, dan pembayaran dividen atas saham tersebut ditunda.

		
	 Article 8

GENERAL MEETING OF SHAREHOLDERS
	  	 Pasal 8

RAPAT UMUM PEMEGANG SAHAM

		
	 1.  The General Meeting of Shareholders of the Company shall be:
	  	 1.  Rapat Umum Pemegang Saham Perseroan adalah:

		
	 (a)   The Annual General Meeting of Shareholders; and
	  	 (a)   Rapat Umum Pemegang Saham Tahunan; dan

		
	 (b)   Other General Meeting of Shareholders, hereinafter referred to as
extraordinary.
	  	 (b)   Rapat Umum Pemegang Saham lainnya, yang selanjutnya disebut juga luar
biasa.

		
	 2.  The term General Meeting of Shareholders (“GMS”) in these Articles of
Association shall mean both annual GMS and the extraordinary GMS, unless expressly stated otherwise.
	  	 2.  Istilah Rapat Umum Pemegang Saham (“RUPS”) dalam Anggaran Dasar ini
yaitu RUPS tahunan dan RUPS luar biasa, kecuali dengan tegas ditentukan lain.

		
	 3.  The Annual GMS must be held no later than 6 (six) months after each financial year
of the Company ends.
	  	 3.  RUPS Tahunan wajib diadakan dalam jangka waktu paling lambat 6 (enam) bulan
setelah setiap tahun buku Perseroan berakhir.

		
	 4.  At the Annual GMS:
	  	 4.  Dalam RUPS Tahunan:

		
	 (a)   The Board of Directors shall present:
	  	 (a)   Direksi menyampaikan:

		
	 •  the annual report which has been reviewed by the Board of Commissioners for
approval of GMS; and
	  	 •  laporan tahunan yang telah ditelaah oleh Dewan Komisaris untuk mendapat
persetujuan RUPS; dan

		
	 •  the financial report to be ratified by the GMS; and
	  	 •  laporan keuangan untuk disetujui oleh RUPS; dan

		
	 (b)   Subject to the dividend policy and the provisions in the Shareholders
Agreement of the
	  	 (b)   Tunduk pada kebijakan deviden dan ketentuan-ketentuan dalam
Perjanjian

  
 83 

			
		
	 Company, the appropriation of profit shall be determined, if the Company has a positive balance of net profit.
	  	 Pemegang Saham Perseroan, penggunaan laba akan ditentukan, jika Perseroan mempunyai saldo laba yang
positif.

		
	 (c)   Other matters validly brought to the GMS by shareholders with voting
rights in accordance with the provisions of these Articles of Association and the Shareholders Agreement shall be resolved.
	  	 (c)   Hal-hal lain yang secara sah
dibawa ke dalam RUPS oleh para pemegang saham dengan hak suara sesuai dengan ketentuan dalam Anggaran Dasar ini dan Perjanjian Pemegang Saham harus diputuskan.

		
	 5.  The approval of the annual report and the ratification of the financial report by
the Annual GMS shall constitute the granting of a full discharge and release to the members of the Board of Directors and the Board of Commissioners from their responsibilities for management and supervision during the past book year to the extent
such actions are reflected in the annual report and the ratification on the financial report.
	  	 5.  Persetujuan laporan tahunan dan pengesahan laporan keuangan oleh RUPS Tahunan
berarti memberikan pelunasan dan pembebasan tanggung jawab sepenuhnya kepada anggota Direksi dan Dewan Komisaris atas pengurusan dan pengawasan yang telah dijalankan selama tahun buku yang lalu sejauh tindakan tersebut tercermin dalam laporan
tahunan dan pengesahan laporan keuangan.

		
	 6.  An extraordinary GMS may be held at any time as necessary to discuss and decide
upon matters affecting the Company, excluding matters stipulated in paragraph 4 a and 4 b of this article, with due observance to the prevailing laws, the Shareholders Agreement and these Articles of Association.
	  	 6.  RUPS luar biasa dapat diselenggarakan sewaktu-waktu berdasarkan kebutuhan untuk
membahas dan menentukan mata acara rapat yang mempengaruhi Perseroan, kecuali mata acara rapat yang dimaksud dalam ayat 4 a dan 4 b dari pasal ini, dengan memperhatikan peraturan perundang-undangan yang berlaku, Perjanjian Pemegang Saham dan
Anggaran Dasar ini.

		
	 7.  An Extraordinary GMS shall be convened by the Board of Directors at the written
request of the Board of Commissioners, or at the written request of one or more shareholders representing (whether jointly or individually) at least 10% of the total issued shares (which may consist of one or more shareholders). Any such written
request by shareholders must be sent by registered mail, stating the matter to be discussed together with the reasons,
	  	 7.  RUPS Luar Biasa dapat diselenggarakan oleh Direksi atas permintaan tertulis dari
Dewan Komisaris, atau atas permintaan dari satu atau lebih pemegang saham yang mewakili (baik bersama-sama maupun sendiri-sendiri) paling sedikit 10% dari total saham yang dikeluarkan (yang dapat terdiri dari satu atau lebih pemegang saham). Setiap
permintaan tertulis dari pemegang saham tersebut harus

  
 84 

			
	 with a copy submitted to the Board of Commissioners.
	  	 dikirimkan melalui surat tercatat, yang menyatakan masalah yang akan dibahas bersama dengan alasannya, dengan sebuah
salinan dikirimkan kepada Dewan Komisaris.

		
	 8.  In the event that the Board of Directors and Board of Commissioners fail to
convene a GMS at such time as has been stipulated, the shareholders whom represent at least 10% (ten percent) of the total amount of the shares having valid voting rights shall be entitled to call the Annual GMS themselves at the Company’s
expense after obtaining a permit therefore from the Chairman of the District Court whose jurisdiction includes the Company’s domicile, without prejudice to the prevailing laws and regulations.
	  	 8.  Apabila Direksi atau Dewan Komisaris lalai untuk menyelenggarakan RUPS pada waktu
yang telah ditentukan, maka pemegang saham yang memiliki sedikitnya 10% (sepuluh persen) dari total jumlah saham dengan hak suara yang sah berhak menyelenggarakan sendiri RUPS Tahunan atas biaya Perseroan setelah mendapat izin dari Ketua Pengadilan
Negeri yang daerah hukumnya meliputi tempat kedudukan Perseroan, dengan tidak mengurangi peraturan perundang-undangan yang berlaku.

		
	 Article 9

PLACE AND NOTICE AND CHAIRMAN OF THE GENERAL MEETING OF SHAREHOLDERS
	  	 Pasal 9

TEMPAT DAN PEMANGGILAN DAN PIMPINAN RAPAT UMUM PEMEGANG SAHAM

		
	 1.  The GMS must be held at the place of domicile or other place of business of the
Company.
	  	 1.  RUPS diadakan di tempat kedudukan Perseroan atau di tempat Perseroan melakukan
kegiatan usaha.

		
	 2.  The notice of the GMS must be made in writing and dispatched directly or by
registered post not less than 14 (fourteen) days prior to the date of the GMS, excluding the date of the notice and the date of the GMS, except where all the shareholders with valid voting rights are present or represented at the GMS.
	  	 2.  Pemanggilan RUPS dibuat secara tertulis dan dikirimkan langsung atau melalui pos
tercatat tidak kurang dari 14 (empat belas) hari sebelum tanggal RUPS diadakan, tidak termasuk tanggal pemanggilan dan tanggal RUPS diadakan, kecuali jika semua pemegang saham dengan hak suara yang sah hadir atau diwakili dalam RUPS.

		
	 3.  The notice of the GMS must state the day, date, time, place and agenda of the GMS
together with a notice that the materials to be discussed at the GMS are available at the Company’s office as from the date of the notice until the date of the GMS. The notice of the Annual GMS also must state that the annual report as
mentioned in article 19 paragraph 5 is available in the Company’s office.
	  	 3.  Panggilan RUPS harus mencantumkan hari, tanggal, jam, tempat dan acara RUPS,
dengan disertai pemberitahuan bahwa bahan yang akan dibicarakan dalam RUPS tersedia di kantor Perseroan mulai dari hari dilakukan pemanggilan sampai dengan tanggal RUPS diadakan. Pemanggilan RUPS Tahunan harus pula mencantumkan bahwa laporan tahunan
sebagaimana

  
 85 

							
				
		 		  		  	dimaksudkan dalam pasal 19 ayat 5 telah tersedia di kantor Perseroan.
				
	 4.  
	 	The notice of the GMS will state that the shareholders eligible to attend the GMS are the ones who are listed in the shareholders registry of the Company at the date which is due not less than 16 (sixteen) days, and not more than 60
(sixty) days prior to the said date of the GMS, as determined by the party who calls for the GMS.	  	4.	  	Dalam panggilan RUPS akan dicantumkan pemberitahuan bahwa pemegang saham yang berhak hadir dalam RUPS adalah para pemegang saham yang namanya tercatat dalam daftar pemegang saham Perseroan pada tanggal yang jatuhnya tidak kurang
dari 16 (enam belas) hari, akan tetapi tidak lebih dari 60 (enam puluh) hari sebelum tanggal RUPS yang bersangkutan, sebagaimana ditentukan oleh pihak yang memanggil RUPS.
				
	 5.  
	 	If all the shareholders with valid voting rights are present and/or represented at the GMS, prior notice as referred to in paragraph 2 of this article is not required and the GMS can be held at any place within the territory of the
Republic of Indonesia and shall be entitled to take binding decision provided that all shareholders approve in a unanimous vote.	  	5.	  	Apabila semua pemegang saham dengan hak suara yang sah hadir dan/atau diwakili dalam RUPS, maka pemanggilan terlebih dahulu seperti dimaksud dalam ayat 2 pasal ini tidak dibutuhkan dan RUPS dapat diselenggarakan dimanapun juga dalam
wilayah Republik Indonesia dan berhak mengambil keputusan yang mengikat dengan ketentuan bahwa semua pemegang saham menyetujui dengan suara bulat.
				
	 6.  
	 	 (a)   In addition to the GMS as described in paragraph 1, the GMS may be held
through teleconference, video conference or other electronic facilities which enables all those attending the GMS to directly hear and participate in the GMS.
	  	 6.  
	  	 (a)   Sebagai tambahan atas RUPS sebagaimana dideskripsikan dalam ayat 1, RUPS
dapat juga dilakukan melalui media telekonferensi, video konferensi atau melalui sarana elektronik lainnya yang memungkinkan semua peserta RUPS mendengar dan berpartisipasi secara langsung dalam RUPS.

				
		 	 (b)   The minutes of meeting in every convention of GMS as referred in this
paragraph 6 subsection (a) of this article must be made in writing and circulated to all participating shareholders for approval and signature.
	  		  	 (b)   Berita acara rapat atas setiap penyelenggaraan RUPS sebagaimana disebutkan
dalam ayat 6 subseksi (a) dari pasal ini harus dibuat dalam bentuk tertulis dan dibagikan kepada seluruh pemegang saham yang berpartisipasi untuk disetujui dan ditandatangani.

  
 86 

							
		 	If the minutes of GMS are drawn in the form of a notarial deed a notary in Indonesia, such approval and signature from the participating shareholders as stipulated above is not required. However, the Company is required to provide
the GMS attendance signed by the participating shareholders in the GMS held in this paragraph subsection(a).	  		  	Apabila berita acara RUPS dibuat dalam bentuk akta notaris di Indonesia, persetujuan dan tanda tangan dari para pemegang saham yang berpartisipasi sebagaimana disebutkan di atas tidak diperlukan. Akan tetapi, Perseroan diharuskan
untuk memberikan daftar hadir RUPS yang ditandatangani oleh para pemegang saham yang berpartisipasi dalam RUPS yang diadakan berdasarkan ayat ini subseksi (a).
				
	7.	 	 (a)   Unless otherwise provided in these Articles of Association, all GMS shall
be presided over by the President Commissioner.
	  	7.	  	 (a)   Kecuali apabila dalam Anggaran Dasar ini ditentukan yang lain, semua RUPS
dipimpin oleh Presiden Komisaris.

				
		 	 (b)   In case of absence or unavailability of the President Commissioner for any
reason, which impediment shall require no evidence to any third party, the GMS shall be presided over by Vice President Commissioner.
	  		  	 (b)   Dalam hal Presiden Komisaris tidak ada atau berhalangan karena sebab
apapun, hal mana tidak perlu dibuktikan kepada pihak ketiga, rapat dipimpin oleh Wakil Presiden Komisaris.

				
		 	 (c)   In case of absence or unavailability of the Vice President Commissioner
for any reason, which impediment shall require no evidence to any third party, the GMS shall be presided over by one of the other members of the Board of Commissioners.
	  		  	 (c)   Dalam hal Wakil Presiden Komisaris tidak ada atau berhalangan karena sebab
apapun, hal mana tidak perlu dibuktikan kepada pihak ketiga, RUPS dipimpin oleh salah seorang anggota Dewan Komisaris.

				
		 	 (d)   If all members of Board of Commissioners are not present or unavailable
for any reason, the impediment of which shall require no evidence to any third party, the GMS shall be presided over by the President Director.
	  		  	 (d)   Dalam hal semua anggota Dewan Komisaris tidak ada atau berhalangan karena
sebab apapun, hal mana tidak perlu dibuktikan kepada pihak ketiga, RUPS dipimpin oleh Presiden Direktur.

				
		 	 (e)   If the President Director is not present or unavailable for any reason
which impediment need not to be proven to
	  		  	 (e)   Dalam hal Presiden Direktur tidak ada atau berhalangan karena sebab
apapun, hal mana tidak perlu dibuktikan

  
 87 

							
				
		  	 any third party, the GMS shall be presided over by a member of Board of Directors.

 
 (f)   If all members of the
Board of Directors are absent or unavailable impediment of which shall require no evidence to any third party, the GMS shall be presided over by a shareholder or their proxy elected by and from among those present at the GMS.
	  		 	 kepada pihak ketiga, rapat dipimpin oleh seorang anggota Direksi.

 
 (f)   Dalam hal semua anggota
Direksi tidak ada atau berhalangan karena sebab apapun, hal mana tidak perlu dibuktikan kepada pihak ketiga, RUPS dipimpin oleh pemegang saham atau kuasanya yang dipilih oleh dari antara mereka yang hadir dalam RUPS.

				
	8.	  	Proposals by shareholders shall be included in the agenda of the GMS, if the proposal concerned has been:	  	8.	 	Usul-usul oleh para pemegang saham harus dimasukkan pada acara RUPS, jika usulan tersebut telah :
				
		  	 (a)   submitted in writing to the Board of Directors by 1 (one) or more
shareholders representing at least 10% (ten percent) of the aggregate number of shares issued by the Company; and
	  		 	 (a)   diajukan secara tertulis kepada Direksi oleh 1 (satu) atau lebih pemegang
saham yang mewakili sedikitnya 10% (sepuluh persen) dari jumlah seluruh saham yang dikeluarkan oleh Perseroan, dan

				
		  	 (b)   received by the Board of Directors at least 7 (seven) days prior to the
date of sending the notice for the meeting.
	  		 	 (b)   diterima oleh Direksi sedikitnya 5 (lima) hari sebelum tanggal dilakukan
pemanggilan rapat.

			
	 Article 10

QUORUM, VOTING RIGHTS AND RESOLUTIONS OF GMS
	  		 	 Pasal 10

KUORUM, HAK SUARA DAN KEPUTUSAN RUPS

				
	1.	  	 (a)   the GMS shall be lawful only if attended by shareholders representing at
least 2/3 (two-thirds) of the total issued shares with legal voting rights issued by the Company, unless (i) as stated otherwise in these Articles of Association or (ii) applicable laws then in
effect requires a higher quorum.
	  	1.	 	 (a)   RUPS adalah sah apabila dihadiri oleh pemegang saham yang mewakili
setidaknya 2/3 (dua per tiga) bagian dari total seluruh saham dengan hak suara yang sah yang telah dikeluarkan Perseroan, kecuali (i) ditentukan lain dalam Anggaran Dasar ini atau (ii) hukum yang berlaku diwaktu tersebut mewajibkan kuorum
yang lebih tinggi.

  
 88 

			
	 (b)   In the event the quorum referred to in paragraph 1(a) of this article is
not satisfied, then a notice for a second GMS may be given.
	  	 (b)   Dalam hal kuorum sebagaimana dimaksud dalam ayat 1(a) pasal ini tidak
tercapai, maka diadakan pemanggilan RUPS kedua.

		
	 (c)   The notice referred to in paragraph 1(b) shall be sent not less than 7
(seven) days before the date of the second GMS excluding the date of the notice and the second GMS, except where all the shareholders with valid voting rights are present or represented at the second GMS.
	  	 (c)   Pemanggilan sebagaimana yang dimaksud dalam ayat 1(b) harus dilakukan
selambatnya 7 (tujuh) hari sebelum RUPS kedua diselenggarakan tidak termasuk tanggal pemanggilan dan tanggal RUPS kedua, kecuali semua pemegang saham dengan hak suara yang sah hadir atau diwakili dalam RUPS kedua.

		
	 (d)   The second GMS shall be held not earlier than 10 (ten) days and not later
than 21 (twenty one) days as from the date of the first GMS.
	  	 (d)   RUPS kedua tidak dapat diselenggarakan lebih cepat dari 10 (sepuluh) hari
dan lebih lambat dari 21 (dua puluh satu) hari terhitung sejak RUPS pertama dilangsungkan.

		
	 (e)   The second GMS shall be lawful and entitled to adopt binding resolutions
if attended by shareholders representing at least 2/3 (two-thirds) of the total issued shares with legal voting rights, unless (i) stated otherwise in these Articles of Association or (ii) applicable
law then in effect requires a higher quorum.
	  	 (e)   RUPS kedua adalah sah dan berhak mengambil keputusan yang mengikat jika
dihadiri oleh pemegang saham yang mewakili setidaknya 2/3 (dua per tiga) bagian dari total seluruh saham yang dikeluarkan dengan hak suara yang sah, kecuali (i) ditentukan lain dalam Anggaran Dasar ini atau (ii) hukum yang berlaku diwaktu
tersebut mewajibkan kuorum yang lebih tinggi.

		
	 (f)   In the event the quorum for the second GMS is not reached, then the quorum
shall, upon request by the Company, be determined by the Chairman of a District Court whose jurisdiction covers the domicile of the Company.
	  	 (f)   Dalam hal kuorum untuk RUPS kedua tidak tercapai, maka kuorum harus,
berdasarkan permintaan oleh Perseroan, ditentukan oleh Ketua Pengadilan Negeri yang yurisdiksinya mencakup domisili Perseroan.

  
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	 2.  Each shareholder may be represented by another shareholder or by other persons by
virtue of a power of attorney to attend and vote at the GMS or to sign the resolutions passed in accordance with paragraph 11 of this article.
	  	 2.  Setiap pemegang saham dapat diwakili oleh pemegang saham lain atau orang lain
dengan surat kuasa untuk menghadiri dan memberikan suara dalam RUPS atau untuk menandatangani keputusan yang diberikan sesuai dengan ayat 11 pasal ini.

		
	 3.  The Chairman of the GMS shall have right to request that the power of attorney to
represent a shareholder be presented to him/her at the time the GMS is convened.
	  	 3.  Ketua RUPS berhak meminta agar surat kuasa untuk mewakili pemegang saham
diperlihatkan kepadanya pada waktu RUPS diadakan.

		
	 4.  At the GMS, each share shall confer the right to its owner to cast 1 (one) vote.
The Chairman at the GMS shall not be entitled to a second or casting vote.
	  	 4.  Dalam RUPS, tiap saham memberikan hak kepada pemiliknya untuk mengeluarkan 1
(satu) suara. Ketua RUPS tidak berhak terhadap suara kedua atau mengeluarkan suara.

		
	 5.  A member of the Board of Directors, Board of Commissioners and any employees of
the Company shall be permitted to act as proxy of a shareholder at the GMS, but any votes cast by any such purported proxy shall be null and void.
	  	 5.  Suatu anggota Direksi, Dewan Komisaris dan setiap karyawan Perseroan harus
diizinkan untuk bertindak sebagai kuasa dari suatu pemegang saham dalam RUPS, namun setiap suara yang dikeluarkan oleh kuasa tersebut adalah batal demi hukum.

		
	        Without prejudice to the aforesaid provisions, a
member of the Board of Directors who is a director or an authorized representative of a shareholder of the Company may by virtue of his position with such shareholder represents and casts votes on behalf of such shareholders in GMS.
	  	        Tanpa mengesampingkan ketentuan yang disebutkan di
atas, seorang anggota Direksi yang merupakan seorang Direktur atau seorang perwakilan yang berwenang dari suatu pemegang saham Perseroan dapat dengan posisinya atas pemegang saham tersebut mewakili dan mengeluarkan suara atas nama pemegang saham
tersebut dalam RUPS.

		
	 6.  Voting regarding an individual shall be made by using a ballot paper which is
folded without signature unless decided otherwise by the Chairman of the GMS, without objections from any of the persons who are present in the GMS.
	  	 6.  Pemungutan suara mengenai diri orang dilakukan dengan kertas suara yang dilipat
dan tidak ditandatangani kecuali jika Ketua RUPS menentukan lain, tanpa ada keberatan dari setiap orang yang hadir dalam RUPS.

		
	 7.  Blank votes or void votes shall be considered
non-existent and shall not
	  	 7.  Suara blanko atau suara yang tidak sah dianggap tidak ada dan tidak

  
 90 

			
	 be counted in the determination of the number of votes that are cast at the GMS.
	  	 dihitung dalam menentukan jumlah suara yang dikeluarkan dalam RUPS.

		
	 8.  Unless otherwise provided in these Articles of Association or the Shareholders
Agreement, all resolutions of the GMS shall be adopted on the basis of an affirmative vote of at least 2/3 (two-thirds) of the votes legally cast at the GMS.
	  	 8.  Kecuali apabila ditentukan yang lain dalam Anggaran Dasar ini atau Perjanjian
Pemegang Saham, semua keputusan dalam RUPS diambil berdasarkan suara setuju sedikitnya 2/3 (dua per tiga) bagian dari jumlah suara yang secara sah dikeluarkan dalam RUPS.

		
	        Notwithstanding the above, the approval of the
following shall require the affirmative vote of at least 3/4 (three-quarter) of the votes legally cast at the GMS:
	  	        Tanpa mengenyampingkan ketentuan di atas, persetujuan
atas hal-hal berikut ini membutuhkan suara setuju dari paling sedikit 3/4 (tiga per empat) hak suara yang dikeluarkan secara sah dalam RUPS:

		
	 (a)   any dismissal of any member of the Board of Commissioners or Board of
Directors of the Company or any of the Company’s subsidiaries; and
	  	 (a)   setiap pemberhentian dari anggota Dewan Komisaris atau Direksi Perseroan
atau anak perusahaan Perseroan; dan

		
	 (b)   other matters stipulated under the Shareholders Agreement.
	  	 (b)   hal-hal lain yang disebutkan dalam
Perjanjian Pemegang Saham.

		
	 9.  The manner of voting on any matter shall be as directed by the Chairman of the
GMS, unless shareholders representing not less than 1/5 (one-fifth) of the total issued shares demand that voting be by sealed and unsigned written ballot.
	  	 9.  Cara pemungutan suara tentang segala hal akan dilakukan menurut arahan Ketua RUPS,
kecuali apabila pemegang saham yang mewakili paling sedikit 1/5 (satu per lima) bagian dari total saham dengan hak suara sah yang dikeluarkan oleh Perseroan menuntut pemungutan suara dengan kertas suara tertutup yang tidak
ditandatangani.

		
	        In the event of a tie vote, the resolution concerned
shall be deemed to have been defeated.
	  	        Dalam hal suara yang berimbang, keputusan yang
bersangkutan dianggap ditolak.

		
	 10.  Unless otherwise required by law, all proposals raised by a shareholder during
the GMS shall meet the following conditions:
	  	 10.  Kecuali apabila ditentukan yang lain oleh peraturan perundang-undangan, semua
usul yang diajukan oleh pemegang saham selama berlangsungnya RUPS harus memenuhi syarat-syarat sebagai berikut:

  
 91 

			
	 (a)   the matters in question shall be directly related to any one of the agenda
items;
	  	 (a)   usul tersebut mempunyai hubungan langsung dengan salah satu mata acara
rapat;

		
	 (b)   the matters in question shall be raised by shareholder(s) representing at
least 1/10 (one-tenth) of the total issued shares of the Company as of the record voting date; and
	  	 (b)   usul tersebut diajukan oleh pemegang saham yang mewakili paling sedikit
1/10 (satu per sepuluh) bagian dari total saham Perseroan yang telah dikeluarkan sampai pada tanggal pencatatan suara; dan

		
	 (c)   in the opinion of the chairman of the GMS the proposal is directly related
to the business of the Company or the governance of the Company.
	  	 (c)   menurut pendapat pemimpin RUPS usulan tersebut berhubungan secara langsung
dengan usaha Perseroan atau pengaturan dari Perseroan.

		
	 11.  The shareholders may also adopt valid and binding resolutions without convening
the GMS provided that the relevant proposal has been notified to all shareholders and all shareholders (or their proxies by virtue of a power of attorney) have given their approval by signing a written statement as evidence of their approval. Such
resolutions adopted in such manner shall be deemed equal to those lawfully adopted at the GMS.
	  	 11.  Pemegang saham juga dapat mengambil keputusan yang sah dan mengikat tanpa
mengadakan RUPS, dengan ketentuan usulan yang terkait telah diberitahu kepada semua pemegang saham dan semua pemegang saham (atau kuasanya berdasarkan suatu surat kuasa) telah memberikan persetujuan dengan menandatangani suatu pernyataan tertulis
sebagai bukti persetujuannya. Keputusan yang diambil dengan cara demikian akan dianggap sama dengan keputusan yang diambil dengan sah dalam RUPS.

		
	 12.  Minutes of the meeting of the GMS shall be drawn up by a person present at the
GMS designated by the Chairman of the GMS. Such minutes of the GMS shall be signed by the Chairman and by a person present at the GMS, to verify the completeness and accuracy of the minutes.
	  	 12.  Risalah RUPS dibuat oleh seseorang yang hadir dalam RUPS dan ditunjuk oleh Ketua
RUPS. Risalah RUPS tersebut harus ditandatangani oleh Ketua Rapat dan seseorang yang hadir dalam RUPS tersebut, untuk memeriksa kelengkapan dan ketepatannya.

		
	        If the minutes of GMS are drawn in the form of a
notarial deed, such signatures as stipulated above is not required.
	  	        Apabila berita acara RUPS dibuat dalam bentuk suatu
akta notaris, tanda tangan sebagaimana disebutkan di atas tidak diperlukan.

		
	 13.  A copy of the minutes of the GMS in accordance with paragraph 12 of this article
shall be deemed as valid copy to
	  	 13.  Salinan risalah RUPS yang dibuat sesuai dengan ketentuan dalam ayat 12 pasal ini
akan berlaku sebagai

  
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	 all shareholders and to all third parties of resolutions adopted in the GMS aforesaid.

 
 14.  A copy of, or excerpt from, the
minutes of meeting of GMS shall be deemed a legal copy or excerpt, if it is stated to be a true copy or excerpt and is signed by 2 (two) members of the Board of Directors or if it is issued by the notary public who drew up the minutes
concerned.
	  	 salinan yang sah untuk semua pemegang saham dan pihak ketiga mengenai keputusan-keputusan yang diambil dalam RUPS yang
bersangkutan.
  
 14.  Salinan atau
kutipan risalah RUPS harus dianggap sebagai salinan atau kutipan yang sah, apabila dinyatakan sebagai salinan atau kutipan yang benar dan ditandatangani oleh 2 (dua) anggota Direksi atau dikeluarkan oleh notaris yang membuat risalah RUPS yang
bersangkutan.

		
	 15.  If there is a dispute arising out of the contents of the minutes of meeting, such
dispute shall be settled in the next GMS based on resolution adopted by at least 2/3 (two-thirds) of the total votes legally cast at the GMS.
	  	 15.  Jika timbul perselisihan mengenai isi dari risalah RUPS, maka perselisihan
tersebut akan diselesaikan dalam RUPS berikutnya berdasarkan keputusan yang diambil oleh paling sedikit 2/3 (dua per tiga) bagian dari total suara yang secara sah dikeluarkan dalam RUPS tersebut.

		
	 Article 11

AMENDMENTS OF THE ARTICLES OF ASSOCIATION
	  	 Pasal 11

PERUBAHAN ANGGARAN DASAR

		
	 1.  Amendments of these Articles of Association shall be determined by the GMS
attended by shareholders who are representing at least 2/3 (two-thirds) of the total issued shares with legal voting rights and by a resolution approved by at least 2/3
(two-thirds) of the total issued shares with legal voting rights. The said amendments to these Articles of Association shall be set out in a notarial deed and in the Indonesian language, which must be made
within 30 (thirty) days after the date of GMS resolution.
	  	 1.  Perubahan Anggaran Dasar ditetapkan oleh RUPS yang dihadiri oleh pemegang saham
yang mewakili paling sedikit 2/3 (dua per tiga) bagian dari total saham yang telah dikeluarkan yang mempunyai hak suara yang sah dan keputusan disetujui oleh sekurangnya 2/3 (dua per tiga) dari total saham dikeluarkan dengan hak suara yang sah.
Perubahan Anggaran Dasar tersebut harus dibuat dengan akta notaris dan dalam Bahasa Indonesia, yang dibuat selambatnya 30 (tiga puluh) hari sejak tanggal keputusan RUPS.

		
	 2.  The amendments to the provisions of the Articles of Association concerning name,
domicile, purposes and objectives, business activities, period of establishment, amount of the authorized capital, reduction in the issued and paid-up capital and change in the status if the Company
	  	 2.  Perubahan ketentuan Anggaran Dasar yang menyangkut perubahan nama, tempat
kedudukan, maksud dan tujuan, kegiatan usaha, jangka waktu berdirinya Perseroan, besarnya modal dasar, pengurangan modal yang ditempatkan dan disetor dan perubahan status Perseroan
tertutup

  
 93 

			
		
	        from a private company to a public company and vice
versa, shall be approved by the Minister of Laws and Human Rights of the Republic of Indonesia no later than 30 (thirty) days after the date of the notarial deed containing such amendment of these Articles of Association.
	  	        menjadi Perseroan terbuka atau sebaliknya, wajib
dimohonkan untuk mendapat persetujuan dari Menteri Hukum dan Hak Asasi Manusia Republik Indonesia selambatnya 30 (tiga puluh) hari sejak tanggal akta notaris yang memuat perubahan Anggaran Dasar tersebut.

		
	 3.  Amendments to these Articles of Associations in respect of items other than those
provided in paragraph 2 of this article shall be sufficiently reported to the Minister of Laws and Human Rights of Indonesia within a period no later than 30 (thirty) days as from the date of the resolution of the GMS concerning the said amendments
and shall be registered with the Company Register.
	  	 3.  Perubahan Anggaran Dasar selain yang menyangkut
hal-hal yang tersebut dalam ayat 2 pasal ini cukup diberitahukan kepada Menteri Hukum dan Hak Asasi Manusia Republik Indonesia dalam waktu selambatnya 30 (tiga puluh) hari terhitung sejak tanggal keputusan
RUPS tentang perubahan tersebut serta didaftarkan dalam Daftar Perseroan.

		
	 4.  Resolutions concerning the reduction of capital shall be notified in writing to
all creditors of the Company and announced by the Board of Directors in 1 (one) daily newspaper in Indonesia language, which is nationally circulated in the domicile of the Company and in the State Gazette not later than 7 (seven) days after the
date of the resolution concerning the said reduction of capital.
	  	 4.  Keputusan mengenai pengurangan modal harus diberitahukan secara tertulis kepada
semua kreditor Perseroan dan diumumkan oleh Direksi dalam 1 (satu) atau lebih surat kabar harian berbahasa Indonesia, yang terbit atau beredar secara nasional di tempat kedudukan Perseroan dan dalam Berita Negara selambatnya 7 (tujuh) hari sejak
tanggal keputusan tentang pengurangan modal tersebut.

		
	 Article 12

MERGER, AMALGAMATION, ACQUISITIONS, SPIN OFF AND DISSOLUTION
	  	 Pasal 12

PENGGABUNGAN, PELEBURAN, PENGAMBILALIHAN, PEMISAHAN DAN PEMBUBARAN

		
	 1.  With due observance of the applicable laws and regulations: a merger, amalgamation
or acquisition, spin off, filing of bankruptcy petition, extension to the period of establishment of the Company or any Company subsidiary, or dissolution of the Company or any of the Company’s subsidiaries can be made only based on a decision
of the GMS which is attended by shareholders representing at least 3/4 (three-quarters) of the total issued shares with legal voting rights and the decision must be
	  	 1.  Dengan memperhatikan ketentuan peraturan perundang-undangan yang berlaku: suatu
penggabungan, peleburan atau pengambilalihan, pemisahan, pengajuan permohonan agar Perseroan dinyatakan pailit, perpanjangan jangka waktu berdirinya Perseroan atau setiap anak perusahaan Perseroan, atau pembubaran Perseroan atau setiap anak
perusahaan Perseroan hanya dapat dilakukan berdasarkan keputusan RUPS yang dihadiri oleh

  
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	 made with the approval from the shareholders representing at least 3/4 (three-quarters) of the total votes legally cast
at the GMS.
	  	        pemegang saham yang mewakili sekurangnya 3/4 (tiga
per empat) bagian dari total saham yang dikeluarkan dengan hak suara yang sah dan keputusan disetujui oleh pemegang saham yang mewakili sekurangnya 3/4 (tiga per empat) bagian dari total suara yang dikeluarkan dengan sah dalam RUPS
tersebut.

		
	 2.  The Board of Directors shall announce in 1 (one) daily newspaper in the Indonesian
language which is nationally circulated in the domicile or place of business activities of the Company and written announce to all the employees of the Company the plan of the merger, amalgamation, acquisitions, spin off and dissolution about the
merger, amalgamation, acquisitions, spin off and dissolution planning resume not later than 30 (thirty) days before the GMS notice.
	  	 2.  Direksi wajib mengumumkan dalam 1 (satu) surat kabar harian berbahasa Indonesia
yang terbit atau beredar secara nasional di tempat kedudukan atau tempat kegiatan usaha Perseroan dan mengumumkan secara tertulis kepada karyawan dari Perseroan rencana penggabungan, peleburan, pengambilalihan, pemisahan dan pembubaran Perseroan
dalam jangka waktu paling lambat 30 (tiga puluh) hari sebelum pemanggilan RUPS.

		
	 3.  In case the Company is dissolved, due to either the expiration of the duration of
the Company or the dissolution of the Company in accordance with the resolution of the GMS or the declaration of the dissolution of the Company by a decision of the Court, then a liquidation shall be executed by a liquidator or an
administrator.
	  	 3.  Apabila Perseroan dibubarkan, baik karena berakhirnya jangka waktu berdirinya
Perseroan atau dibubarkannya Perseroan berdasarkan keputusan RUPS atau dinyatakan bubarnya Perseroan berdasarkan penetapan Pengadilan, maka harus diadakan likuidasi oleh likuidator atau kurator.

		
	 4.  The Board of Directors shall act as a liquidator, if the GMS resolution or
declaration as referred to in paragraph 3 of this article does not appoint a liquidator.
	  	 4.  Direksi bertindak sebagai likuidator apabila dalam keputusan RUPS atau penetapan
sebagaimana dimaksud dalam ayat 3 pasal ini tidak menunjuk likuidator.

		
	 5.  The liquidator commission is determined by the GMS or court decision.
	  	 5.  Upah bagi para likuidator ditentukan oleh RUPS atau penetapan
pengadilan.

		
	 6.  The resolution to liquidate the Company shall be registered by the liquidators
with the Company Register, announced in the State Gazette of the Republic of Indonesia and in 1 (one) daily newspaper in the
	  	 6.  Keputusan untuk melikuidasi Perseroan wajib didaftarkan oleh likuidator dalam
Daftar Perseroan, diumumkan dalam Berita Negara Republik Indonesia dan dalam 1 (satu) surat kabar harian berbahasa

  
 95 

			
		
	        Indonesian language which is nationally circulated in
the domicile or place of business activities of the company notify to the Minister of Laws and Human Rights of Indonesia not later than 30 (thirty) days after the Company liquidates.
	  	        Indonesia yang terbit atau beredar secara nasional di
tempat kedudukan Perseroan atau tempat kegiatan usaha Perseroan serta diberitahukan kepada Menteri Hukum dan Hak Asasi Manusia Republik Indonesia selambatnya 30 (tiga puluh) hari sejak Perseroan dilikuidasi.

		
	 7.  These Articles of Association as set forth in this deed or as further amended,
shall continue to prevail until the day the liquidation accounts are ratified in GMS and full discharge is given to the liquidator(s).
	  	 7.  Anggaran Dasar seperti yang termaktub dalam akta ini atau sebagaimana diubah lebih
lanjut, tetap berlaku sampai dengan tanggal disahkannya perhitungan likuidasi oleh RUPS dan diberikannya pelunasan dan pembebasan sepenuhnya kepada para likuidator.

		
	 Article 13

BOARD OF DIRECTORS
	  	 Pasal 13

DIREKSI

		
	 1.  The Company is managed and chaired by a Board of Directors consisting of a maximum
of 6 (six) Directors, unless as stipulated otherwise in paragraph 4 of this Article 13, whereby one of them may be appointed as the President Director.
	  	 1.  Perseroan dikelola dan dipimpin oleh suatu Direksi yang terdiri dari paling banyak
6 (enam) orang Direktur kecuali sebagaimana dinyatakan lain dalam ayat 4 dari Pasal 13 ini, dimana seorang di antaranya dapat diangkat sebagai Presiden Direktur.

		
	 2.  Only private persons, qualified under prevailing statutory regulations and
qualifications determined in accordance with the provisions of the Shareholders Agreement, may be appointed as members of the Board of Directors and members of the Board of Directors shall be appointed in accordance with the provisions of the
Shareholders Agreement.
	  	 2.  Yang boleh diangkat sebagai anggota Direksi hanyalah orang perseorangan yang
memenuhi persyaratan sesuai peraturan perundang-undangan yang berlaku dan kualifikasi yang ditetapkan sesuai dengan ketentuan Perjanjian Pemegang Saham dan anggota Direksi diangkat sesuai dengan ketentuan Perjanjian Pemegang Saham

		
	 3.  A member of the Board of Directors shall be appointed by the GMS, in accordance
with the criteria, selection mechanism, and recommendation of the nominating committee under the provisions of the Shareholders Agreement, for a period of 5 (five) years without prejudice to the GMS’ right to discharge the member in any time,
subject to the provisions of the Shareholders Agreement.
	  	 3.  Anggota Direksi diangkat oleh RUPS, sesuai dengan kriteria, mekanisme seleksi, dan
rekomendasi dari komite nominasi berdasarkan ketentuan dalam Perjanjian Pemegang Saham, untuk masa jabatan 5 (lima) tahun dengan tidak mengurangi hak RUPS untuk memberhentikan anggota tersebut sewaktu-waktu, tunduk pada ketentuan dalam Perjanjian
Pemegang Saham.

  
 96 

			
	 4.  If, prior to the end of any five year term of office of a member of the Board of
Directors, there is no successor or replacement of the members of the Board of Directors nominated and appointed in accordance with the provisions of the Shareholders Agreement, then Freeport-McMoRan Inc. or its Affiliate (as defined in the
Shareholders Agreement) that become shareholders (collectively, “Freeport”) (to the extent that Freeport holds shareholding at least 25% of the issued shares of the Company) will nominate 3 (three) members of the Board of Directors
whereas PT Indonesia Asahan Aluminium (Persero), PT Indonesia Papua Metal dan Mineral and their respective Affiliates (as defined in the Shareholders Agreement) that become shareholders (collectively, the “Inalum Group”) (to the
extent that the Inalum Group holds shareholding for at least 25% shares of the issued shares of the Company) will nominate 3 (three) members of the Board of Directors (“Shareholder Designation Procedure”).
	  	 4.  Jika, sebelum berakhirnya masa jabatan lima tahun dari seorang anggota Direksi,
tidak ada penerus atau pengganti dari anggota Direksi yang dinominasikan dan ditunjuk sesuai dengan ketentuan Perjanjian Pemegang Saham, maka Freeport-McMoRan Inc. atau Afiliasinya (sebagaimana didefinisikan berdasarkan Perjanjian Pemegang Saham)
yang menjadi pemegang saham (bersama-sama disebut sebagai “Freeport”) (sepanjang Freeport mempunyai kepemilikan saham paling sedikit 25% dari total saham yang diterbitkan Perseroan) akan menominasikan 3 (tiga) anggota Direksi dimana
PT Indonesia Asahan Aluminium (Persero), PT Indonesia Papua Metal dan Mineral dan Afiliasinya (sebagaimana didefinisikan berdasarkan Perjanjian Pemegang Saham) yang menjadi pemegang saham (bersama-sama disebut sebagai “Grup Inalum”)
(sepanjang Grup Inalum memiliki kepemilikan saham paling sedikit 25% dari total saham yang diterbitkan oleh Perseroan) akan menominasikan 3 (tiga) anggota Direksi (“Prosedur Penunjukan oleh Pemegang Saham”).

		
	 5.  A member of the Board of Directors whose term of office has expired shall be
eligible for re-election in accordance with the provisions of the Shareholders Agreement.
	  	 5.  Seorang anggota Direksi yang masa jabatannya telah berakhir dapat dipilih kembali
sesuai dengan ketentuan Perjanjian Pemegang Saham.

		
	 6.  Salaries and other remuneration may be granted to the members of the Board of
Directors, the amount of which shall be determined by the GMS.
	  	 6.  Gaji dan tunjangan lainnya dapat diberikan kepada anggota Direksi, yang jumlahnya
ditentukan oleh RUPS.

		
	 7.  A member of the Board of Directors will have the right to retire from his/her
position by giving a written notice about his/her purpose to the Company, not later than 30 (thirty) days before his/her retiring date, unless the GMS agreed to give a shorter period for the notice.
	  	 7.  Anggota Direksi berhak mengundurkan diri dari jabatannya dengan memberitahukan
secara tertulis mengenai maksudnya tersebut kepada Perseroan, sekurangnya 30 (tiga puluh) hari sebelum tanggal pengunduran dirinya, kecuali jika RUPS menyetujui jangka waktu yang lebih

  
 97 

			
	    	  	 singkat untuk penyampaian pemberitahuan tersebut.

		
	        Such retiring Director will be released from his/her
liabilities only if the GMS resolves to release him/her from all such liabilities.
	  	        Anggota Direksi yang mengundurkan diri tersebut hanya
akan dilepaskan dari tanggung jawabnya jika RUPS memutuskan untuk melepaskannya dari semua tanggung jawab.

		
	 8.  The provision on the term of the member of Board of Directors appointed to fill
the said vacant Board of Directors position is the remaining term of the replaced member of the Board of Directors.
	  	 8.  Ketentuan terkait masa jabatan anggota Direksi yang ditunjuk untuk mengisi
kekosongan anggota Direksi adalah sisa dari masa jabatan anggota Direksi yang digantikannya.

		
	 9.  In the event that due to any reason whatsoever all of the positions of the members
of the Board of Directors become vacant, the Company shall be managed temporarily by the member(s) of the Board of Commissioners, which is appointed by meetings of the Board of Commissioners.
	  	 9.  Dalam hal karena alasan apapun seluruh posisi Direksi menjadi kosong, Perseroan
harus dikelola secara sementara oleh anggota(-anggota) Dewan Komisaris, yang ditunjuk oleh rapat Dewan Komisaris.

		
	 10.  Subject to the provisions of the Shareholders Agreement, the term of office of a
member of the Board of Directors shall terminate in the event that such member of the Board of Directors:
	  	 10.  Tunduk pada ketentuan-ketentuan dari Perjanjian Pemegang Saham, masa jabatan dari
seorang anggota Direksi harus berakhir dalam hal anggota Direksi tersebut:

		
	 (a)   resigns from his/her position in the manner set forth in paragraph 7 of
this article;
	  	 (a)   mengundurkan diri dari posisinya sesuai dengan ketentuan ayat 7 dari pasal
ini;

		
	 (b)   no longer meets the requirements pursuant to the prevailing laws and
regulations;
	  	 (b)   tidak lagi memenuhi ketentuan berdasarkan hukum dan peraturan
perundang-undangan yang berlaku;

		
	 (c)   dies;
	  	 (c)   meninggal dunia;

		
	 (d)   is dismissed by virtue of a resolution of the GMS resolution; or
	  	 (d)   diberhentikan berdasarkan keputusan RUPS; atau

		
	 (e)   is declared bankrupt or put under custody (curatele) of other person based
on the court decision or determination.
	  	 (e)   dinyatakan pailit atau diletakan dalam pengampuan (curatele) orang lain
berdasarkan keputusan atau

  
 98 

			
	    	  	 ketetapan pengadilan.

		
	 11.  If, as a result of death, disability, retirement, resignation, removal or
otherwise, a member of the Board of Directors ceases to serve on the Board of Directors, then such vacancy shall be filled in accordance with the provisions of the Shareholders Agreement.
	  	 11.  Jika, sebagai akibat meninggal dunia, ketidakmampuan, pensiun, pengunduran diri,
diberhentikan atau sebab lainnya, seorang anggota Direksi tidak lagi menjadi anggota Direksi, maka kekosongan tersebut harus diisi sesuai dengan ketentuan Perjanjian Pemegang Saham.

		
	 Article 14

DUTIES AND POWERS OF THE BOARD OF DIRECTORS
	  	 Pasal 14

TUGAS DAN WEWENANG DIREKSI

		
	 1.  The Board of Directors, subject to the provisions of the Shareholders Agreement
(including in respect of the authority delegated by the Board of Directors to the operating committee and the finance committee in accordance with the provisions of the Shareholders Agreement), shall be entitled and have the authority to represent
the Company, both before and outside of the courts of law, regarding all matters and in all events, to bind the Company with other parties, and to take all actions relating to the management of or ownership by the Company, including to oversee
strategy, government relations, internal communications, external affairs, sales and marketing, environmental strategy, security assessment, finance, accounting, tax, community development, legal, compliance, corporate social responsibility,
strategic procurement advice, Jakarta-based human resources, and Jakarta-based administration, in each case with respect to the Company and its subsidiaries, provided that for the following actions:
	  	 1.  Direksi, dengan tunduk pada ketentuan Perjanjian Pemegang Saham (termasuk mengenai
kewenangan yang didelegasikan oleh Direksi kepada komite operasional dan komite keuangan sesuai dengan ketentuan Perjanjian Pemegang Saham, berhak dan memiliki wewenang untuk mewakili Perseroan, baik di dalam dan di luar pengadilan, mengenai segala
hal dan dalam segala kejadian, untuk mengikat Perseroan dengan pihak lain, serta untuk menjalankan segala tindakan baik mengenai kepengurusan maupun kepemilikan oleh Perseroan, termasuk untuk mengawasi strategi, hubungan dengan pemerintah,
komunikasi internal, urusan eksternal, penjualan dan pemasaran, strategi mengenai lingkungan hidup, penilaian jaminan, keuangan, akuntansi, pajak, pengembangan komunitas, hukum, kepatuhan, tanggung jawab sosial perseroan, nasihat strategis
pengadaan, sumber daya manusia yang berlokasi di Jakarta, administrasi yang berlokasi di Jakarta, dalam setiap keadaan sehubungan dengan Perseroan dan anak perusahaannya, dengan ketentuan untuk tindakan-tindakan:

		
	 (a)   to approve an Annual Operating Plan or Annual Financial Plan, or any
amendment thereto, that includes an action or expense
	  	 (a)   untuk menyetujui Rencana Operasi Tahunan atau Rencana Keuangan Tahunan,
atau setiap perubahan

  
 99 

			
		
	        that is a Significant Deviation to the LTIP (other
than Significant Deviations resulting from Non-Discretionary Actions) (as defined in the Shareholders Agreement);
	  	 terhadapnya, yang mencakup kegiatan atau pengeluaran yang merupakan Penyimpangan Yang Signifikan terhadap LTIP (selain
Penyimpangan Yang Signifikan yang dihasilkan dari Tindakan Non-Diskresioner) (sebagaimana didefinisikan di dalam Perjanjian Pemegang Saham);

		
	 (b)   any legal act to assign, dispose of any right or grant of a security
interest over more than 50% of the Company’s consolidated assets in any fiscal year;
	  	 (b)   setiap tindakan hukum untuk mengalihkan, melepaskan hak apapun atau
menjaminkan lebih dari 50% aset Perseroan yang terkonsolidasi pada setiap tahun buku;

		
	 (c)   to materially amend or waive any material right under or terminate the
Company’s special mining business permit (IUPK);
	  	 (c)   untuk secara material mengubah atau mengesampingkan setiap hak material
berdasarkan atau mengakhiri izin usaha pertambangan khusus Perseroan (IUPK);

		
	 (d)   to incur any indebtedness for borrowed money which (i) exceeds
US$1 billion in aggregate and would cause the Interest Coverage Ratio (as defined in the Shareholders Agreement) to fall below two to one or (ii) is not on arms’ length terms;
	  	 (d)   untuk menimbulkan utang untuk uang yang dipinjam yang (i) melebihi US$ 1
miliar secara seluruhnya dan dapat menyebabkan Interest Coverage Ratio (sebagaimana didefinisikan dalam Perjanjian Pemegang Saham) untuk jatuh di bawah dua atau satu atau (ii) bukan dengan ketentuan yang wajar dan lazim (arms’
length term);

		
	 (e)   to acquire or dispose of stock or assets in excess of US$250 million
or that is not on arms’ length terms, in each case other than the acquisitions relating to the Grasberg Smelter (as defined in the Shareholders Agreement) as identified in the LTIP;
	  	 (e)   untuk mengakuisisi atau melepaskan saham atau aset melebihi US$250 juta
atau yang bukan dengan ketentuan yang wajar dan lazim (arms’ length term), dalam setiap kasus selain akuisisi yang berhubungan dengan Smelter Grasberg (sebagaimana
didefinisikan

  
 100 

			
	    	  	 dalam Perjanjian Pemegang Saham) sebagaimana diidentifikasi dalam LTIP;

		
	 (f)   to conduct any transactions with any shareholder or Affiliate (as defined
in the Shareholders Agreement) of a shareholder, unless permitted under the Shareholders Agreement; and
	  	 (f)   untuk melakukan setiap transaksi dengan pemegang saham atau afiliasi
(sebagaimana yang didefinisikan dalam Perjanjian Pemegang Saham) dari pemegang saham manapun, kecuali diizinkan berdasarkan Perjanjian Pemegang Saham; dan

		
	 (g)   other matters as set out in the Shareholders Agreement,
	  	 (g)   hal-hal lain sebagaimana
disebutkan dalam Perjanjian Pemegang Saham,

		
	        the Board of Directors shall obtain prior approval
from the GMS attended or represented by the shareholders who own at least 3/4 (three-quarter) of the total shares with valid voting rights and approved by at least 3/4 (three-quarter) of the total votes validly cast in the meeting, and the approval
of Inalum Group shall be obtained prior to such actions being taken, provided that, at the time the consent is required, Inalum Group holds at least 25% of the issued shares of the Company.
	  	        Direksi harus mendapatkan persetujuan dari RUPS yang
dihadiri atau diwakili oleh pemegang saham yang memiliki paling sedikit 3/4 (tiga per empat) bagian dari jumlah saham yang diterbitkan dengan hak suara dan disetujui oleh paling sedikit 3/4 (tiga per empat) bagian dari jumlah seluruh suara yang
dikeluarkan secara sah dalam RUPS, dan persetujuan dari Grup Inalum harus didapatkan sebelum tindakan tersebut dilakukan, dengan ketentuan bahwa, pada saat persetujuan diperlukan, Grup Inalum memiliki setidaknya 25% dari saham yang diterbitkan
Perseroan.

		
	 2.  Subject to the Shareholders Agreement, the Board of Directors shall not terminate
the Freeport Services Agreement without the approval of the Board of Commissioners, provided that if any member of the Board of Commissioners recuses himself or herself or is disqualified from participating in the decision of whether to terminate
the Freeport Services Agreement, then the approval of the Board of Commissioners will not be required and the termination of the Freeport Services Agreement will only be subject to the approval of the GMS.
	  	 2.  Dengan tetap tunduk pada Perjanjian Pemegang Saham, Direksi tidak akan mengakhiri
Perjanjian Jasa Freeport tanpa persetujuan dari Dewan Komisaris, dengan ketentuan apabila setiap anggota dari Dewan Komisaris mengundurkan diri atau tidak memenuhi syarat untuk berpartisasi dalam keputusan apakah akan mengakhiri Perjanjian Jasa
Freeport, maka persetujuan Dewan Komisaris tidak akan disyaratkan dan pengakhiran dari Perjanjian Jasa Freeport hanya akan tunduk pada persetujuan RUPS.

  
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	3.	 	 (a)   The President Director is entitled and authorized to act on behalf of the
Board of Directors in representing the Company.
	  	 3.  
	  	 (a)   Presiden Direktur berhak dan berwenang bertindak untuk dan atas nama
Direksi serta mewakili Perseroan.

				
		 	 (b)   In case a President Director has not been appointed by the GMS, or the
President Director is not present or unavailable for any reason, which reason need not to be proven to any third party, any 2 (two) Directors are entitled and authorized to act for and on behalf of the Board of Directors in representing
Company.
	  		  	 (b)   Dalam hal Presiden Direktur tidak ditunjuk oleh RUPS, atau Presiden
Direktur tidak ada atau berhalangan karena sebab apapun, yang alasannya tidak perlu untuk dibuktikan kepada pihak ketiga, maka 2 (dua) anggota Direksi lainnya berhak dan berwenang bertindak untuk dan atas nama Direksi serta mewakili
Perseroan.

				
	4.	 	The Board of Directors (which is represented in accordance with paragraph 3 of this article), in respect of specific act is authorized to appoint one or more persons as its representative or proxy by granting to the said
person/persons authorities by virtue of a power of attorney.	  	4.	  	Direksi (yang diwakili sesuai dengan ayat 3 dalam pasal ini) untuk perbuatan tertentu berhak pula mengangkat seorang atau lebih sebagai wakil atau kuasanya dengan memberikan kepadanya kekuasaan yang diatur dalam surat
kuasa.
				
	5.	 	In the event that the Company’s interests are in conflict with the personal interest of a member of the Board of Directors, the Company shall be represented by another member of the Board of Directors and in the event the
Company’s interests are in conflict with the interests of all of the members of the Board of Directors, the Company shall be represented by the Board of Commissioners.	  	5.	  	Dalam hal Perseroan mempunyai kepentingan yang bertentangan dengan kepentingan pribadi seorang anggota Direksi maka Perseroan akan diwakili oleh anggota Direksi lainnya dan dalam hal Perseroan mempunyai kepentingan yang bertentangan
dengan kepentingan seluruh anggota Direksi, maka dalam hal ini Perseroan diwakili oleh dewan Komisaris.
				
	6.	 	As set out in the Shareholders Agreement, management of the Company vests in the Board of Directors, as supervised by the Board of Commissioners, subject to the delegation of certain of its functions in accordance with the
Shareholders Agreement (including the establishment of an operating committee and a finance committee in accordance with the provisions of the Shareholders Agreement and the operating committee having the authority in relation to the	  	6.	  	Sebagaimana ditetapkan dalam Perjanjian Pemegang Saham, manajemen Perseroan melekat pada Direksi, diawasi oleh Dewan Komisaris, tunduk pada pendelegasian fungsi terntentu Direksi sesuai dengan Perjanjian Pemegang Saham (termasuk
pendirian komite operasional dan komite keuangan sesuai dengan ketentuan Perjanjian Pemegang Saham dan komite operasional memiliki kewenangan sehubungan

  
 102 

			
	management of the operations of the Company to the extent delegated in accordance with, and as further provided in, the Shareholders Agreement).	  	dengan pengurusan kegiatan operasional Perseroan sejauh yang didelegasikan menurut, dan sebagaimana diatur lebih lanjut dalam, Perjanjian Pemegang Saham).
	        The shareholders, the Board of Directors, and the
Board of Commissioners of the Company shall exercise their votes, powers and rights in relation to the Company to procure (i) that the Board of Directors delegates those functions or authority (including to make decisions) required to be delegated
and (ii) the composition, appointment or removal of these committees are conducted, in each case in accordance with the Shareholders Agreement.
	  	        Pemegang saham, Direksi dan Dewan Komisaris Perseroan
akan menggunakan suara, kewenangan dan hak mereka sehubungan dengan Perseroan untuk memastikan bahwa (i) Direksi mendelegasikan fungsi atau kewenangannya (termasuk untuk membuat keputusan) yang diperlukan untuk didelegasikan dan (ii) komposisi,
penunjukan atau pemberhentian komite-komite ini, dalam setiap hal, dilakukan sesuai dengan Perjanjian Pemegang Saham.

		
	 Article 15

MEETING OF THE BOARD OF DIRECTORS
	  	 Pasal 15

RAPAT DIREKSI

		
	 1.  Meetings of the Board of Directors shall be held:
	  	 1.  Rapat Direksi harus dilaksanakan:

		
	 (a)   at least once every calendar quarter; and
	  	 (a)   paling sedikit sekali dalam triwulan kalender; dan

		
	 (b)   at such other times as a majority of the members of the Board of Directors
may agree.
	  	 (b)   pada waktu lain dimana mayoritas anggota Direksi dapat
menyetujuinya.

		
	 2.  The notice for the meeting of the Board of Directors shall be given by a member of
Board of Directors entitled to represent the Board of Directors pursuant to the provisions of article 14 of these Articles of Association.
	  	 2.  Panggilan Rapat Direksi dilakukan oleh anggota Direksi yang berhak mewakili
Direksi menurut ketentuan pasal 14 dari Anggaran Dasar ini.

		
	 3.  Notice of a meeting of the Board of Directors stating the place, date and hour of
the meeting and the agenda for which the meeting is called shall be given to each member of the Board of Directors by telephone, electronic mail or facsimile no less than 5 (five) business days before the date of the meeting unless otherwise agreed
by all
	  	 3.  Panggilan Rapat Direksi yang menyebutkan tempat, tanggal dan jam dan acara rapat
dimana rapat dimintakan harus diberikan kepada setiap anggota Direksi melalui telepon, surat elektronik atau faksimili tidak kurang dari 5 (lima) hari kerja sebelum tanggal rapat kecuali apabila disepakati lain
oleh

  
 103 

			
		
	        members of the Board of Directors. Presence at the
meeting shall constitute waiver of any deficiency of notice, except when such member of the Board of Directors attends the meeting for the express purpose of objecting, at the beginning of the meeting, to the transaction of any business because the
meeting is not called or convened in accordance with these Articles of Association or the Shareholders Agreement.
	  	        seluruh anggota Direksi. Kehadiran pada rapat
dianggap sebagai pengesampingan dari setiap kekurangan pemberitahuan, kecuali ketika anggota Direksi tersebut menghadiri rapat untuk menyampaikan tujuan keberatan, pada awal rapat, terhadap transaksi atas setiap urusan karena rapat tidak dipanggil
sesuai dengan Anggaran Dasar ini atau Perjanjian Pemegang Saham.

		
	 4.  The meeting of Board of Directors shall be convened at the domicile of the Company
or the Company’s place of activity or any other location agreed by the members of the Board of Directors, provided that, to the extent applicable laws allow, at the request of the Board of Directors, the Board of Directors may hold meetings at
the same time and at the same place as the meetings held by the Board of Commissioners in accordance with these Articles of Association.
	  	 4.  Rapat Direksi diadakan di tempat kedudukan Perseroan atau tempat kegiatan usaha
Perseroan atau lokasi lain yang disetujui oleh anggota Direksi, dengan ketentuan bahwa, sejauh diperbolehkan oleh hukum yang berlaku, atas permintaan dari Direksi, Direksi dapat mengadakan rapat pada saat yang sama dan pada tempat yang sama dengan
dimana rapat yang dilaksanakan oleh Dewan Komisaris sesuai dengan Anggaran Dasar ini.

		
	 5.  Meetings of the Board of Directors shall be chaired by the President Director, or
if the President Director is not present or prevented from attending, the meeting shall be chaired by a person elected by and from the members of the Board of Directors who are present. The chair of the meeting of the Board of Directors may vote in
his or her own right but does not have a casting vote.
	  	 5.  Rapat Direksi harus dipimpin oleh Presiden Direktur, atau apabila Presiden Direksi
tidak ada atau berhalangan untuk hadir, akan dipimpin oleh seseorang yang dipilih oleh dan dari anggota anggota Direksi yang hadir. Pemimpin rapat Direksi dapat mengeluarkan suara dengan haknya sendiri namun tidak mempunyai suara yang
dihitung.

		
	 6.  A member of the Board of Directors may be represented by another member of the
Board of Directors, by virtue of a power of attorney, to attend and vote in a meeting or to sign the resolutions passed in accordance with paragraph 15 of this article, provided that a member of the Board of Directors designated pursuant to the
Shareholder Designation Procedure shall be entitled to cast votes on behalf of any other member of the Board of Directors nominated by the same shareholder(s) that is not in attendance at any meeting by virtue of a power of attorney.
	  	 6.  Seorang anggota Direksi dapat diwakili oleh anggota Direksi yang lain, berdasarkan
surat kuasanya, untuk menghadiri dan menggunakan hak suaranya dalam rapat atau menandatangani keputusan yang diputuskan sesuai dengan ayat 15 dari pasal ini, dengan ketentuan bahwa anggota Direksi yang ditunjuk menurut Prosedur Penunjukkan oleh
Pemegang Saham berhak untuk memberikan suara atas nama anggota Direksi lain yang dinominasikan oleh pemegang saham yang sama yang tidak hadir pada rapat berdasarkan

  
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		 		 		 	 surat kuasa.

				
	7.	 	 (a)   A meeting of Board of Directors shall be valid and shall be entitled to
adopt binding resolutions if more than 1/2 (one half) of the total members of the Board of Directors are present or represented in the meeting.
	 	 7.  
	 	 (a)   Rapat Direksi adalah sah dan berhak mengambil keputusan yang mengikat
apabila lebih dari 1/2 (satu per dua) dari jumlah anggota Direksi hadir atau diwakili dalam rapat.

				
		 	 (b)   During periods where members of the Board of Directors are appointed by
Shareholders in accordance with the Shareholder Designation Procedure, a meeting of Board of Directors shall be valid and shall be entitled to adopt binding resolutions if at least one Director nominated by Freeport (to the extent that it holds 25%
of the issued shares of the Company) and one Director nominated by Inalum Group (to the extent that Inalum Group holds 25% of the issued shares of the Company) are present and in attendance.
	 		 	 (b)   Selama jangka waktu dimana anggota Direksi ditunjuk oleh Para Pemegang
Saham, sesuai dengan Prosedur Penunjukan oleh Pemegang Saham, suatu rapat Direksi adalah sah dan berhak mengambil keputusan yang mengikat apabila setidaknya satu Direktur yang dinominasikan oleh Freeport (sepanjang Freeport memiliki 25% dari total
saham di Perseroan) dan satu Direktur yangdinominasikan oleh Grup Inalum (sepanjang Grup Inalum memiliki 25% dari total saham dalam Perseroan) hadir.

				
	8.	 	If a quorum is not present within 30 minutes from the scheduled start of a meeting of the Board of Directors:	 	8.	 	Apabila kuorum tidak tercapai dalam waktu 30 menit dari permulaan rapat yang dijadwalkan dari Direksi:
				
		 	 (a)   the meeting is adjourned for a minimum of 24 hours after the time
appointed for the original meeting, however the day for the adjourned meeting must be a business day; and
	 		 	 (a)   rapat ditunda paling sedikit 24 jam setelah jadwal yang ditentukan untuk
rapat pada aslinya, namun hari ditundanya rapat harus merupakan hari kerja; dan

				
		 	 (b)   the quorum and the place of the adjourned meeting is otherwise the same as
for the original meeting.
	 		 	 (b)   kuorum dan tempat dari rapat yang ditunda adalah sama dengan rapat
asli.

				
		 	 (c)   If a quorum is not present within 30 minutes from the scheduled start of
the adjourned meeting, the meeting is dissolved.
	 		 	 (c)   apabila kuorum tidak hadir dalam 30 menit dari permulaan yang dijadwalkan
dari rapat yang ditunda, rapat tersebut dibubarkan.

  
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	 (d)   The only matters that may be considered at the adjourned meeting are
matters which were included in the notice provided in relation to the original meeting under paragraph 3 of this Article 15.
	  	 (d)   satu-satunya hal yang dapat dipertimbangkan pada rapat yang ditunda adalah
hal-hal yang disebutkan dalam pemanggilan (pemberitahuan) yang diberikan sehubungan dengan rapat asli berdasarkan ayat 3 dari Pasal 15 ini.

		
	 9.  Actions of the Board of Directors are adopted by the affirmative vote of a
majority of the members of the Board of Directors at a duly convened meeting of the Board of Directors at which a quorum is present.
	  	 9.  Tindakan Direksi diambil dengan suara setuju dari mayoritas anggota Direksi pada
rapat yang dilaksanakan oleh Direksi dimana kuorum hadir.

		
	 10.  Each member on the Board of Directors shall have 1 (one) vote. Voting concerning
an individual shall be made by an unsigned folded ballot paper and voting concerning other matters shall be made orally, except if the Chairman of the meeting determines otherwise without any objection from those present. Blank and void votes shall
not be counted in determining whether or not a decision is approved and shall not be counted in the calculation of the votes cast.
	  	 10.  Setiap anggota Direksi memiliki 1 (satu) suara. Pemungutan suara mengenai
seseorang harus dilakukan dengan kertas suara dilipat yang belum ditandatangani dan suara mengenai hal yang lain harus dilakukan secara verbal, kecuali apabila Ketua rapat menentukan yang lain tanpa ada keberatan dari mereka yang hadir. Suara blanko
dan suara yang tidak sah dianggap tidak dikeluarkan secara sah dan dianggap tidak ada serta tidak dihitung dalam menentukan jumlah suara yang dikeluarkan.

		
	 11.  Minutes of the meetings of the Board of Directors shall be drawn up by a person
present at the meeting and designated by the Chairman of the meeting and shall be signed by all members of the Board of Directors present at the meeting to verify the completeness and accuracy of the minutes. Minutes of a meeting made and signed
shall serve as conclusive evidence concerning the resolutions adopted at the meeting concerned. If such minutes are drawn up by a notary, members’ signatures shall not be required. A copy of or excerpt from the minutes of meeting of the Board
of Directors shall be deemed a legal copy or excerpt if it is stated to be a true copy or excerpt and is signed by all members of the Board of Directors or if it is issued by the notary who has drawn up
	  	 11.  Risalah rapat Direksi harus dibuat oleh seseorang yang hadir pada rapat dan
ditunjuk oleh Ketua rapat dan harus ditandatangani oleh seluruh anggota Direksi yang hadir saat rapat untuk memverifikasi kelengkapan dan akurasi dari risalah tersebut. Risalah rapat yang dibuat dan ditandatangani akan berfungsi sebagai bukti
konklusif mengenai keputusan yang diambil pada saat rapat tersebut. Apabila risalah tersebut dibuat oleh notaris, tanda tangan anggota tidak dibutuhkan. Salinan atas atau kutipan dari risalah rapat Direksi harus dianggap sebagai salinan yang sah
atau kutipan yang sah apabila hal tersebut disebutkan sebagai salinan atau kutipan asli dan ditandatangani oleh seluruh anggota

  
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	        the minutes concerned. Minutes of the meeting of
Board of Directors made in accordance with the provisions of paragraph 11 of this Article 15 shall be applicable as a valid evidence for all members of the Board of Directors and third parties with regards to resolutions adopted in the respective
meeting of Board of Directors.
	  	        Direksi atau apabila hal tersebut diterbitkan oleh
notaris yang telah membuat risalah tersebut. Salinan risalah rapat Direksi yang dibuat sesuai dengan ketentuan ayat 11 Pasal 15 ini akan berlaku sebagai bukti yang sah untuk semua anggota Direksi dan pihak ketiga mengenai keputusan-keputusan yang
diambil dalam rapat Direksi yang bersangkutan.

		
	 12.  The Company shall pay all reasonable out-of-pocket expenses incurred by each member of the Board of Directors in connection with attending meetings of the Board of Directors, meetings of any committee of the Board of Directors of which the
relevant member of the Board of Directors is a member, and any GMS.
	  	 12.  Perseroan harus membayar seluruh pengeluaran talangan (out-of-pocket) yang wajar yang ditimbulkan oleh setiap anggota Direksi sehubungan dengan menghadiri rapat Direksi, rapat dari komite Direksi dimana anggota Direksi
merupakan anggotanya, dan setiap RUPS.

		
	 13.  Members of the Board of Directors may participate in a meeting of the Board of
Directors or any committee thereof by means of a conference telephone or similar communications equipment by means of which all persons participating in the meeting can hear one another, and such participation shall constitute the presence of such
member for purposes of determining whether a quorum has been met.
	  	 13.  Anggota Direksi dapat berpartisipasi dalam rapat Direksi atau setiap rapat komite
Direksi tersebut, melalui telekonferensi atau peralatan komunikasi serupa dengan cara seluruh orang yang berpartisipasi dalam rapat dapat mendengar satu sama lain dan partisipasi tersebut merupakan kehadiran dari anggota tersebut dengan tujuan untuk
menentukan apakah kuorum telah tercapai.

		
	        The provisions under minutes of meeting of Board of
Directors stipulated in paragraph 11 of this Article shall be applicable mutatis mutandis to the minutes of meeting for the results of convention of the meeting of Board of Directors as referred to in this paragraph 13.
	  	        Ketentuan mengenai risalah rapat Direksi yang diatur
pada ayat 11 Pasal ini berlaku mutatis mutandis untuk risalah rapat hasil penyelenggaraan rapat Direksi sebagaimana dimaksud dalam Ayat 13 ini.

		
	 14.  Each member of the Board of Directors shall vote in accordance with the decision
of the shareholders in relation to certain matters as required by the Shareholders Agreement, and take all actions necessary to give effect to any affirmative vote of the shareholders in relation to certain matters as required by the Shareholders
Agreement.
	  	 14.  Setiap anggota dari Direksi harus menggunakan hak suaranya sesuai dengan
keputusan pemegang saham sehubungan dengan hal-hal tertentu sebagaimana diharuskan dalam Perjanjian Pemegang Saham, dan mengambil seluruh tindakan yang dibutuhkan untuk memberlakukan setiap suara setuju dari
pemegang saham sehubungan dengan hal-hal

  
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		  	 tertentu sebagaimana diharuskan dalam Perjanjian Pemegang Saham.

		
	 15.  On any matter requiring an approval or consent of the Board of Directors, the
Board of Directors or any committee thereof may take such action without a meeting, without notice and without a vote if a consent or consents in writing, setting forth the action to be taken, shall be signed by all of the members of the Board of
Directors (or in the case of a committee of the Board of Directors, all of the members of such committee) or their proxies by virtue of a power of attorney. The resolution adopted in this manner shall have the same legal effect as a resolution
adopted in a meeting of Board of Directors.
	  	 15.  Pada setiap hal yang membutuhkan persetujuan dari Direksi, Direksi atau komite
dari Direksi dapat mengambil tindakan tersebut tanpa rapat, tanpa pemberitahuan dan tanpa suara apabila persetujuan dalam bentuk tertulis, yang mengatur tindakan yang harus diambil, harus ditandatangani oleh seluruh anggota Direksi (atau dalam hal
komite dari Direksi, seluruh anggota dari komite tersebut) atau kuasa mereka berdasarkan surat kuasa. Keputusan yang diambil dengan cara demikian mempunyai kekuatan yang sama dengan keputusan yang diambil dengan sah dalam rapat
Direksi.

		
	 16.  Meetings of the Board of Directors shall be conducted in the English language
provided that if a member of the Board of Directors is not comfortable with the English language, such member shall be entitled, at the cost of the Company, to use the services of an interpreter at such meetings.
	  	 16.  Rapat Direksi dilaksanakan dalam Bahasa Inggris dengan ketentuan bahwa apabila
terdapat anggota Direksi yang tidak nyaman dengan Bahasa Inggris, anggota tersebut berhak, dengan biaya Perseroan, untuk menggunakan jasa penerjemah untuk rapat tersebut.

		
	 17.  All notices of meeting and papers to be considered at any meeting of the Board of
Directors shall be accompanied by an English translation thereof, as shall any other papers that any member of the Board of Directors may reasonably request prior to the meeting.
	  	 17.  Seluruh pemberitahuan rapat dan dokumen yang dipertimbangkan pada setiap rapat
Direksi harus disertai dengan terjemahan Bahasa Inggris atas pemberitahuan dan dokumen tersebut, sebagaimana dokumen lainnya yang mungkin diminta oleh anggota Direksi dapat diminta sebelum rapat.

		
	 18.  The draft minutes (subject to approval at the next meeting) of any such meetings
shall be provided to the members of the Board of Directors in English and in Indonesian within a reasonable time period after such meeting (and in any event by no later than the date on which the agenda and board papers for the next following
meeting are due to be circulated); in the event of any inconsistency between the English and Indonesian texts, the English text shall prevail. If a dispute arises with regards
	  	 18.  Rancangan risalah (tunduk pada persetujuan rapat selanjutnya) dari setiap risalah
harus diberikan kepada anggota Direksi dalam Bahasa Inggris dan dalam Bahasa Indonesia dalam periode waktu yang wajar setelah rapat tersebut (dan dalam hal apapun tidak lebih dari tanggal dimana agenda dan dokumen untuk rapat selanjutnya harus
diedarkan); dalam hal terjadi inkonsistensi antara teks Bahasa Inggris dan teks Bahasa Indonesia, teks Bahasa Inggris akan

  
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	        to the content of the minutes of the meeting of Board
of Directors, such dispute shall be settled in the following meeting of Board of Directors under resolution of more than 1/2 (a half) of the total members of the Board of Directors present and/or represented in such meeting.
	  	        berlaku. Jika timbul perselisihan mengenai isi dari
risalah rapat Direksi maka perselisihan tersebut akan diselesaikan dalam rapat Direksi berikutnya berdasarkan keputusan lebih dari 1/2 (satu per dua) dari jumlah anggota Direksi yang hadir dan/atau diwakili dalam rapat tersebut.

		
	 19.  Subject to acting in the best interests of the Company and complying with all
applicable laws, the Board of Directors (and each individual member of the Board of Directors) must take steps to implement, and may not act inconsistently with the Company’s LTIP, the annual operating plan and annual financial plan (after
giving effect to any amendments thereto or deviations therefrom, subject to the Shareholders Agreement).
	  	 19.  Dengan ketentuan untuk bertindak demi kepentingan terbaik Perseroan dan mematuhi
semua hukum yang berlaku, Direksi (dan setiap anggota individu dari Direksi) harus mengambil langkah-langkah untuk melaksanakan, dan tidak boleh bertindak secara inkonsisten dengan LTIP Perseroan, rencana operasi tahunan dan rencana keuangan tahunan
(setelah memberlakukan setiap perubahan atau penyimpangan terhadapnya, tunduk pada Perjanjian Pemegang Saham).

		
	 Article 16

BOARD OF COMMISSIONERS
	  	 Pasal 16

DEWAN KOMISARIS

		
	 1.  The Board of Commissioners shall consist of 6 (six) commissioners, whereby one of
them shall be appointed as the President Commissioner and one other shall be appointed as the Vice President Commissioner.
	  	 1.  Dewan Komisaris terdiri dari 6 (enam) komisaris, dimana salah seorang akan
diangkat sebagai Presiden Komisaris dan seorang lainnya akan diangkat sebagai Wakil Presiden Komisaris.

		
	 2.  Freeport has the right to nominate 3 (three) members of the Board of Commissioners
and Inalum Group has the right to nominate 3 (three) members of the Board of Commissioners in accordance with the Shareholders Agreement.
	  	 2.  Freeport memiliki hak untuk menominasikan 3 (tiga) anggota Dewan Komisaris dan
Grup Inalum memiliki hak untuk menominasikan 3 (tiga) anggota Dewan Komisaris sesuai dengan Perjanjian Pemegang Saham.

		
	 3.  Only private persons, qualified under prevailing statutory regulations, may be
appointed as members of the Board of Commissioners.
	  	 3.  Yang boleh diangkat sebagai anggota Dewan Komisaris hanyalah orang perseorangan
yang memenuhi persyaratan sesuai peraturan perundang-undangan yang berlaku.

		
	 4.  Each member of the Board of Commissioners is elected by the GMS for a period of 5
(five) years without prejudice to the GMS right to discharge
	  	 4.  Masing-masing anggota Dewan Komisaris diangkat oleh RUPS untuk masa jabatan 5
(lima) tahun dengan tidak mengurangi hak RUPS untuk

  
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	 the member in any time.
	  	 memberhentikan amggota sewaktu-waktu.

		
	 5.  A member of the Board of Commissioners whose term of office has expired shall be
eligible for reelection if nominated by the applicable shareholder as set forth in paragraph 2 of this article.
	  	 5.  Anggota Dewan Komisaris yang periode kerja nya telah berakhir berhak atas
pemilihan kembali apabila dinominasikan oleh pemegang saham yang masih berwenang sebagaimana diatur dalam ayat 2 dari pasal ini.

		
	 6.  Salaries and other remuneration may be granted to the members of the Board of
Commissioners, the amount of which shall be determined by the GMS.
	  	 6.  Gaji dan tunjangan lainnya dapat diberikan kepada anggota Dewan Komisaris, jumlah
tersebut ditentukan oleh RUPS.

		
	 7.  A member of the Board of Commissioners will have the right to retire from his/her
position by giving a written notice about his/her purpose to the Company, not later than 30 (thirty) days before his/her retiring date, unless the GMS agreed to give other period for the notice. Such retiring Commissioner will be released from
his/her liabilities only if the GMS resolves to release him/her from all such liabilities.
	  	 7.  Anggota Dewan Komisaris berhak mengundurkan diri dari jabatannya dengan
memberitahukan secara tertulis mengenai maksudnya tersebut kepada Perseroan, sekurangnya 30 (tiga puluh) hari sebelum tanggal pengunduran dirinya, kecuali jika RUPS menyetujui jangka waktu yang lebih singkat untuk penyampaian pemberitahuan tersebut.
Anggota Dewan Komisaris yang mengundurkan diri tersebut hanya akan dilepaskan dari tanggung jawabnya jika RUPS memutuskan untuk melepaskannya dari semua tanggung jawab.

		
	 8.  A member’s appointment to the Board of Commissioners shall terminate in the
event that such member of the Board of Commissioners:
	  	 8.  Jabatan anggota Dewan Komisaris berakhir apabila:

		
	 (a)   resigns from his/her position in the manner set forth in paragraph
7;
	  	 (a)   mengundurkan diri sesuai dengan ketentuan ayat 7;

		
	 (b)   no longer meets the requirements pursuant to the prevailing laws and
regulations;
	  	 (b)   tidak lagi memenuhi persyaratan hukum dan perundang-undangan yang
berlaku;

		
	 (c)   dies;
	  	 (c)   meninggal dunia;

		
	 (d)   is dismissed by virtue of a resolution of the GMS resolution;
	  	 (d)   diberhentikan berdasarkan keputusan RUPS;

  
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	 (e)   is declared bankrupt or put under custody (curatele) of other person based
on the court decision or determination.
	  	 (e)   dinyatakan pailit atau diletakan dalam pengampuan (curatele) orang lain
berdasarkan keputusan atau ketetapan pengadilan.

		
	 9.  If, as a result of death, disability, retirement, resignation, removal or
otherwise, there shall exist or occur any vacancy on the Board of Commissioners, then a nomination to fill such vacancy shall be made in accordance with the provisions of the Shareholders Agreement.
	  	 9.  Jika, sebagai akibat meninggal dunia, ketidakmampuan, pensiun, pengunduran diri,
diberhentikan atau sebab lainnya, jabatan anggota Dewan Komisaris lowong, maka pencalonan untuk mengisi kelowongan itu dilakukan sesuai dengan ketentuan Perjanjian Pemegang Saham.

		
	 10.  If in any event all of the positions of the Board of Commissioners become vacant,
then prior to the appointment of the new member of the Board of Commissioners, the duties and powers of the Board of Commissioners shall be exercised by the GMS.
	  	 10.  Apabila dalam hal apapun posisi dalam Dewan Komisaris menjadi kosong, maka
sebelum penunjukan anggota Dewan Komisaris baru, tugas-tugas dan kewenangan-kewenangan Dewan Komisaris harus dilaksanakan oleh RUPS.

		
	 Article 17

DUTIES AND POWER OF THE BOARD OF COMMISSIONERS
	  	 Pasal 17

TUGAS DAN WEWENANG DEWAN KOMISARIS

		
	 1.  The Board of Commissioners is responsible for supervising the activities and
management of the Company by the Board of Directors to the extent required by applicable laws, these Articles of Association, and the Shareholders Agreement.
	  	 1.  Dewan Komisaris bertanggung jawab untuk mengawasi jalannya kegiatan usaha serta
pengurusan Perseroan yang dilakukan oleh Direksi sejauh yang diwajibkan oleh hukum yang berlaku, Anggaran Dasar ini, dan Perjanjian Pemegang Saham

		
	        The Board of Commissioners shall also have the
authority to carry out the powers as stipulated in these Articles of Association or in the resolution of a GMS.
	  	        Dewan Komisaris juga mempunyai wewenang untuk
menjalankan kekuasaan-kekuasaan sebagaimana ditentukan dalam Anggaran Dasar ini atau dalam keputusan RUPS.

		
	 2.  The Board of Commissioners shall at any time during the operational hours of the
Company be entitled to enter the premises of the Company or any other place which is used or controlled by the Company and shall be entitled to examine all of the books, letters and other evidences, to examine and verify the cash condition and other
matters and to be cognizant of all of the actions
	  	 2.  Dewan Komisaris setiap waktu dalam jam operasional Perseroan berhak untuk memasuki
bangunan Perseroan atau tempat lain yang dipergunakan atau yang dikuasai oleh Perseroan dan berhak memeriksa semua pembukuan, surat dan alat bukti lainnya, untuk memeriksa dan memverifikasi uang kas dan lain-lain serta berhak untuk
mengetahui

  
 111 

			
	 which have been performed by the Board of Directors.
	  	 seluruh tindakan yang telah dijalankan oleh Direksi.

		
	 3.  The Board of Directors and each member of the Board of Directors shall be obliged
to provide explanation on any matter questioned by the Commissioners.
	  	 3.  Direksi dan setiap anggota Direksi wajib untuk memberikan penjelasan tentang
segala hal yang ditanyakan oleh Dewan Komisaris.

		
	 4.  In the event that all of the members of the Board of Directors are suspended
resulting in that the Company has no Directors, the Board of Commissioners shall be obliged to temporarily manage the Company.
	  	 4.  Dalam hal seluruh anggota Direksi diberhentikan untuk sementara dan mengakibatkan
Perseroan tidak memiliki Direksi, Dewan Komisaris diwajibkan untuk mengelola Perseroan untuk sementara.

		
	        In such a case, the members of the Board of
Commissioners shall upon their joint responsibility be entitled to grant provisional powers to one or more persons amongst themselves based on a a resolution of the Board of Commissioners.
	  	        Dalam hal demikian, anggota Dewan Komisaris harus
atas tanggung jawab bersama mereka berhak untuk memberikan kewenangan tambahan kepada satu orang atau lebih di antara mereka berdasarkan suatu keputusan Dewan Komisaris.

		
	 5.  Subject to the terms of Shareholders Agreement, within a period of 30 (thirty)
days after the suspension of a member or all members of the Board of Directors, the Board of Commissioners shall call an Extraordinary GMS which shall be entitled to decide whether such member(s) of the Board of Directors in question should be
permanently discharged or reinstated in his position, upon having given such member(s) of the Board of Directors ample opportunity to defend himself/themselves against the charges to him/them. In the event that the said GMS is not convened within a
period of 30 (thirty) days after the suspension, such suspension shall cease automatically.
	  	 5.  Dengan tunduk pada ketentuan Perjanjian Pemegang Saham, dalam jangka waktu paling
lambat 30 (tiga puluh) hari setelah pemberhentian sementara atas seorang atau seluruh anggota Direksi, Dewan Komisaris wajib menyelenggarakan RUPS luar biasa yang akan memutuskan apakah anggota Direksi yang bersangkutan akan diberhentikan seterusnya
atau dikembalikan kepada kedudukannya semula, sedangkan anggota Direksi yang diberhentikan untuk sementara itu diberikan kesempatan untuk hadir guna membela diri. Apabila RUPS tersebut tidak diselenggarakan dalam jangka waktu 30 (tiga puluh) hari
setelah pemberhentian sementara itu, maka pemberhentian sementara itu menjadi batal secara otomatis.

		
	 6.  The Board of Commissioners, with decision made in a meeting of the Board of
Commissioners, is entitled to designate one or more committees, each committee consist one or more commissioners. Each committee will be entitled on behalf of the Board of Commissioners to exercise the rights
	  	 6.  Dewan Komisaris, dengan suatu keputusan yang diambil dalam suatu Rapat Dewan
Komisaris, berhak untuk membentuk satu atau lebih komite, setiap komite terdiri dari satu atau lebih komisaris. Setiap komite berhak atas nama Dewan Komisaris untuk melaksanakan hak
dan

  
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	 and authorities which are stated in the resolution which are adopted to designate the said committees.
	  	 kewenangan sebagaimana ditetapkan dalam keputusan Dewan Komisaris yang membentuk komite tersebut.

		
	 Article 18

MEETING OF THE BOARD OF COMMISSIONERS
	  	 Pasal 18

RAPAT DEWAN KOMISARIS

		
	 1.  The Board of Commissioners shall hold a regularly scheduled meeting at least
quarterly (unless the Board of Commissioners decides on different timing), and at such other times as the President Commissioner may request.
	  	 1.  Dewan Komisaris dapat menyelenggarakan rapat yang terjadwal secara regular paling
sedikit setiap 3 bulan sekali (kecuali Dewan Komisaris menentukan waktu yang berbeda), dan pada waktu lainnya sebagaimana dapat diminta oleh Presiden Komisaris.

		
	 2.  The notice of the meeting of Board of Commissioners shall be given by the
President Commissioner, in case President Commissioner is unavailable so that members of Board of Commissioners is entitled to make the notice of the meeting based on power of attorney from President Commissioner.
	  	 2.  Panggilan rapat Dewan Komisaris dilakukan oleh Presiden Komisaris, apabila
Presiden Komisaris berhalangan maka anggota Dewan Komisaris berhak melakukan panggilan rapat berdasarkan kuasa dari Presiden Komisaris.

		
	 3.  Notice of a meeting of the Board of Commissioners or any committee thereof stating
the place, date and hour of the meeting and the agenda for which the meeting is called shall be given to each commissioner by telephone, electronic mail or facsimile no less than 5 (five) business days before the date of the meeting unless otherwise
agreed by all of the commissioners. Presence at the meeting shall constitute waiver of any deficiency of notice, except when such commissioner attends the meeting for the express purpose of objecting, at the beginning of the meeting, to the
transaction of any business because the meeting is not called or convened in accordance with these Articles of Association.
	  	 3.  Panggilan rapat Dewan Komisaris atau setiap rapat komite tersebut menyampaikan
tempat, tanggal dan jam rapat dan acara rapat yang dibuat harus diberikan kepada setiap komisaris melalui telepon, surat elektronik atau faksimili tidak kurang dari 5 (lima) hari kerja sebelum tanggal rapat kecuali disetujui sebaliknya oleh seluruh
komisaris. Kehadiran pada rapat dianggap sebagai pengesampingan dari setiap kekurangan pemberitahuan, kecuali ketika anggota komisaris tersebut menghadiri rapat untuk menyampaikan tujuan keberatan, pada awal rapat, terhadap transaksi atas setiap
urusan karena rapat tidak dipanggil sesuai dengan Anggaran Dasar ini.

		
	 4.  The meeting of the Board of Commissioners shall be convened at the domicile of the
Company or at any place where the Company carries out its business activities or any other location agreed by the members of the Board of
	  	 4.  Rapat Dewan Komisaris diadakan di tempat kedudukan Perseroan atau tempat kegiatan
usaha Perseroan atau tempat lain sebagaimana disetujui oleh anggota Dewan Komisaris, dengan ketentuan bahwa sejauh

  
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	        Commissioners, provided that to the extent applicable
laws allow, at the request of the Board of Commissioners, the Board of Commissioners may hold meetings at the same time and at the same place as the meetings held by the Board of Directors in accordance with these Articles of Association.
	  	        diperbolehkan oleh hukum yang berlaku, atas
permintaan dari Dewan Komisaris, Dewan Komisaris dapat mengadakan rapat pada saat yang sama dan pada tempat yang sama dengan dimana rapat yang dilaksanakan oleh Direksi sesuai dengan Anggaran Dasar ini.

		
	 5.  The Company shall pay all reasonable out-of-pocket expenses incurred by each commissioner in connection with attending meetings of the Board of Commissioners, meetings of any committee of the Board of Commissioners of which the relevant
commissioner is a member and any GMS.
	  	 5.  Perseroan harus membayar seluruh pengeluaran talangan (out-of-pocket) yang wajar yang ditimbulkan oleh setiap anggota Dewan Komisaris sehubungan dengan menghadiri rapat Dewan Komisaris, rapat komite dari Dewan Komisaris yang
anggota Dewan Komisaris tersebut merupakan anggota komite dan setiap RUPS.

		
	 6.  In addition to the meeting of the Board of Commissioners as described in paragraph
4 above, Members of the Board of Commissioners may participate in a meeting of the Board of Commissioners or any committee thereof, by means of a conference telephone or similar communications equipment by means of which all persons participating in
the meeting can hear one another, and such participation shall constitute the presence of such commissioner for purposes of determining whether a quorum has been met.
	  	 6.  Sebagai tambahan dari rapat Dewan Komisaris sebagaimana disebutkan dalam ayat 4 di
atas, anggota Dewan Komisaris dapat berpartisipasi dalam rapat Dewan Komisaris atau setiap rapat komite Dewan Komisaris tersebut, melalui telekonferensi atau peralatan komunikasi serupa dengan cara seluruh orang yang berpartisipasi dalam rapat dapat
mendengar satu sama lain dan partisipasi tersebut merupakan kehadiran dari anggota tersebut dengan tujuan untuk menentukan apakah kuorum telah tercapai.

		
	        The provision relating to the minutes of meeting of
the Board of Commissioners as described in paragraph 18 of this Article 18 shall apply mutatis mutandis for minutes of meeting of the result of the meeting of the Board of Commissioners as described in this paragraph 6.
	  	        Ketentuan mengenai risalah rapat Dewan Komisaris yang
diatur pada ayat 18 Pasal 18 berlaku mutatis mutandis untuk rapat Dewan Komisaris sebagaimana diatur dalam ayat 6 ini.

		
	 7.  Meetings of the Board of Commissioners shall be chaired by the President
Commissioner or, if the President Commissioner is not present or prevented from attending, the Vice President Commissioner. If both the President Commissioner and Vice President Commissioner are not present
	  	 7.  Rapat Dewan Komisaris harus dipimpin oleh Presiden Komisaris atau, apabila
Presiden Komisaris tidak ada atau berhalangan untuk menghadiri, akan dipimpin oleh Wakil Presiden Komisaris. Apabila keduanya baik Presiden Komisaris dan Wakil Presiden Komisaris tidak

  
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	        or prevented from attending, the meeting shall be
chaired by a person elected by and from the commissioners present. The chair of a meeting of the Board of Commissioners may vote in his or her own right but does not have a casting vote.
	  	        ada atau terhalang untuk menghadiri, rapat harus
dipimpin oleh seseorang yang dipilih oleh dan dari anggota anggota Dewan Komisaris yang hadir. Ketua rapat Dewan Komisaris dapat memberikan suara menggunakan haknya sendiri namun tidak memiliki suara yang menentukan keputusan.

		
	 8.  A member of the Board of Commissioners nominated by a shareholder shall also be
entitled, by virtue of a power of attorney, to cast votes on behalf of any other member of the Board of Commissioners nominated by the same shareholder(s) that is not in attendance at any meeting or to sign resolutions passed in accordance with
paragraph 20 of this article.
	  	 8.  Anggota Dewan Komisaris yang dinominasikan oleh pemegang saham juga berhak,
berdasarkan surat kuasa, untuk memberikan suara atas nama anggota Dewan Komisaris lainnya yang dicalonkan oleh pemegang saham yang sama yang tidak hadir pada rapat apa pun atau untuk menandatangani keputusan yang disetujui sesuai dengan ayat 20
pasal ini.

		
	 9.  Meeting of the Board of Commissioners shall be lawful and shall be empowered to
pass valid and binding resolutions only if (i) more than 1/2 (one half) of the incumbent members of the Board of Commissioners are present or represented in the meeting and (ii) if the meeting is attended by at least one commissioner that is
nominated by Freeport (for as long as it holds 25% of issued shares of the Company) and one commissioner that is nominated by Inalum Group (for as long as it holds 25% of issued shares of the Company).
	  	 9.  Rapat Dewan Komisaris adalah sah dan berhak mengambil keputusan yang mengikat
apabila (i) lebih dari 1/2 (satu per dua) dari jumlah anggota Dewan Komisaris hadir atau diwakili dalam rapat dan (ii) apabila rapat dihadiri oleh setidaknya satu komisaris yang dinominasikan oleh Freeport (sepanjang Freeport memiliki 25% dari
saham yang diterbitkan Perseroan) dan satu komisaris yang dinominasikan oleh Grup Inalum (sepanjang mereka memegang 25% dari saham yang diterbitkan oleh Perseroan).

		
	 10.  If a quorum is not present within 30 minutes from the scheduled start of a
meeting:
	  	 10.  Apabila kuorum tidak tercapai dalam waktu 30 menit dari permulaan rapat yang
dijadwalkan:

		
	 (a)   the meeting is adjourned for a minimum of 24 hours after the time
appointed for the original meeting, however the day for the adjourned meeting must be a business day; and
	  	 (a)   rapat ditunda paling sedikit 24 jam setelah jadwal yang ditentukan untuk
rapat pada aslinya, namun hari ditundanya rapat harus merupakan hari kerja; dan

		
	 (b)   the quorum and the place of the adjourned meeting is otherwise the same as
for the original meeting.
	  	 (b)   kuorum dan tempat dari rapat yang ditunda adalah sama seperti rapat
asli.

  
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	 11.  If a quorum is not present within 30 minutes from the scheduled start of the
adjourned meeting, the meeting is dissolved.
	  	 11.  Apabila kuorum tidak hadir dalam 30 menit dari permulaan yang dijadwalkan dari
rapat yang ditunda, rapat tersebut dibubarkan.

		
	 12.  The only matters that may be considered at the adjourned meeting are matters
which were included in the notice provided in relation to the original meeting.
	  	 12.  Satu-satunya hal yang dapat dipertimbangkan pada rapat yang ditunda adalah hal-hal yang disebutkan dalam pemanggilan yang diberikan sehubungan dengan rapat asli.

		
	 13.  Each commissioner on the Board of Commissioners shall have one vote.
	  	 13.  Setiap komisaris dalam Dewan Komisaris memiliki satu suara.

		
	 14.  Actions of the Board of Commissioners are adopted by the affirmative majority
vote of the Board of Commissioners at a duly convened meeting of the Board of Commissioners at which a quorum is present.
	  	 14.  Tindakan Dewan Komisaris diambil dengan suara setuju dari mayoritas anggota Dewan
Komisaris pada rapat yang dilaksanakan oleh Dewan Komisaris dimana kuorum hadir.

		
	 15.  In case of any dispute with respect to the matters set forth in the minutes of
the Board of Commissioners’ meeting, then such dispute shall be resolved at a subsequent meeting of the Board of Commissioners and the resolution thereof shall be approved by more than 1/2 (one half) of the number of the members of the Board of
Commissioners present and/or represented by written power of attorney or proxy at such meeting.
	  	 15.  Jika timbul perselisihan mengenai isi risalah rapat Dewan Komisaris, maka
perselisihan tersebut akan diselesaikan dalam rapat Dewan Komisaris berikutnya berdasarkan keputusan lebih dari 1/2 (satu per dua) dari anggota Dewan Komisaris yang hadir dan/atau diwakili secara sah berdasarkan surat kuasa atau kuasa tertulis dalam
rapat tersebut.

		
	 16.  Each member of the Board of Commissioners shall vote in accordance with the
decision of the shareholders in relation to certain matters as required by the Shareholders Agreement, and take all actions necessary to give effect to any affirmative vote of the shareholders with respect to certain matters as required by the
Shareholders Agreement.
	  	 16.  Setiap anggota dari Dewan Komisaris harus menggunakan hak suaranya sesuai dengan
keputusan pemegang saham sehubungan dengan hal-hal tertentu sebagaimana diharuskan berdasarkan Perjanjian Pemegang Saham, dan mengambil seluruh tindakan yang dibutuhkan untuk memberlakukan setiap suara setuju
dari pemegang saham sehubungan dengan hal-hal tertentu sebagaimana diharuskan berdasarkan Perjanjian Pemegang Saham sebagaimana disebutkan dalam Perjanjian Pemegang Saham.

		
	 17.  (a) Voting concerning an
	  	 17.  (a) Pemungutan suara mengenai

  
 116 

							
		 	 individual shall be made by an unsigned folded ballot paper and voting concerning other matters shall be made orally,
except if the chairman of the meeting determines otherwise without any objection from those present.
	 		  	 seseorang harus dilakukan dengan kertas suara yang belum ditandatangani dan dilipat dan suara mengenai hal yang lain
harus dilakukan secara verbal, kecuali apabila ketua rapat menentukan lain tanpa ada keberatan dari mereka yang hadir.

				
		 	 (b)   Blank votes and void votes shall be deemed not legally cast and
accordingly non- existent and shall not be counted in determining the number of votes cast.
	 		  	 (b)   Suara kosong dan suara tidak sah akan dianggap secara hukum tidak
diberikan dan karenanya tidak ada dan tidak akan dihitung dalam menentukan jumlah suara yang diberikan.

				
	18.	 	Minutes of the meetings of the Board of Commissioners shall be drawn up by a person present at the meeting designated by the chairman of the meeting and shall be signed by all members of the Board of Commissioners present at the
meeting to verify the completeness and accuracy of the minutes. Minutes of a meeting made and signed shall serve as conclusive evidence concerning the resolutions adopted at the meeting concerned. If such minutes are drawn up by a notary,
members’ signatures shall not be required. A copy of or excerpt from the minutes of meeting of the Board of Commissioners shall be deemed a legal copy or excerpt if it is stated to be a true copy or excerpt and is signed by all members of the
Board of Commissioners or if it is issued by the notary who has drawn up the minutes concerned.	 	18.	  	Risalah rapat dari Dewan Komisaris harus dibuat oleh seseorang yang hadir pada rapat dan ditunjuk oleh ketua rapat dan harus ditandatangani oleh seluruh anggota Dewan Komisaris yang hadir saat rapat untuk memverifikasi kelengkapan
dan akurasi dari risalah tersebut. Risalah rapat yang dibuat dan ditandatangani akan berfungsi sebagai bukti konklusif mengenai keputusan yang diambil pada saat rapat tersebut. Apabila risalah tersebut dibuat oleh notaris, tanda tangan anggota tidak
dibutuhkan. Salinan atas atau kutipan dari risalah rapat Dewan Komiraris harus dianggap sebagai salinan yang sah atau kutipan yang sah apabila hal tersebut disebutkan sebagai salinan atau kutipan asli dan ditandatangani oleh seluruh anggota Dewan
Komisaris atau apabila hal tersebut diterbitkan oleh notaris yang telah membuat risalah tersebut.
				
	19.	 	The draft minutes (subject to approval at the next meeting) of any such meetings shall be provided to the members of the Board of Commissioners in English and in Indonesian within a reasonable time period after such meeting (and in
any event by no later than the date on which the agenda and board papers for the next following meeting are due to be	 	19.	  	Rancangan risalah (tunduk pada persetujuan rapat selanjutnya) dari setiap risalah harus diberikan kepada anggota Dewan Komisaris dalam Bahasa Inggris dan dalam Bahasa Indonesia dalam periode waktu yang wajar setelah rapat tersebut
(dan dalam hal apapun tidak lebih dari tanggal dimana agenda dan dokumen

  
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	 circulated); in the event of any inconsistency between the English and Indonesian texts, the English text shall
prevail.
	  	 untuk rapat selanjutnya harus diedarkan); dalam hal terjadi inkonsistensi antara teks Bahasa Inggris dan teks Bahasa
Indonesia, teks Bahasa Inggris akan berlaku.

		
	 20.  On any matter requiring an approval or consent of the Board of Commissioners, the
Board of Commissioners or any committee thereof may take such action without a meeting, without notice and without a vote if a consent or consents in writing, setting forth the action to be taken, shall be signed by all of the members of the Board
of Commissioners (or in the case of a committee of the Board of Commissioners, all of the members of such committee) or their proxies by virtue of a power of attorney. The resolution adopted in this manner shall have the same legal effect as a
resolution adopted in a meeting of the Board of Commissioners.
	  	 20.  Pada setiap hal yang membutuhkan persetujuan dari Dewan Komisaris, Dewan
Komisaris atau komite dari Dewan Komisaris dapat mengambil tindakan tersebut tanpa rapat, tanpa pemberitahuan dan tanpa suara apabila persetujuan dalam bentuk tertulis, yang mengatur tindakan yang harus diambil, harus ditandatangani oleh seluruh
anggota Dewan Komisaris (atau dalam hal komite dari Dewan Komisaris, seluruh anggota dari komite tersebut) atau kuasa mereka berdasarkan surat kuasa. Keputusan yang diambil dengan cara demikian, mempunyai kekuatan yang sama dengan keputusan yang
diambil dengan sah dalam rapat Dewan Komisaris.

		
	 21.  Meetings of the Board of Commissioners shall be conducted in the English language
provided that if a member of the Board of Commissioners is not comfortable with the English language such member shall be entitled, at the cost of the Company, to use the services of an interpreter at such meetings.
	  	 21.  Rapat Dewan Komisaris dilaksanakan dalam Bahasa Inggris dengan ketentuan bahwa
apabila terdapat anggota Dewan Komisaris yang tidak nyaman dengan Bahasa Inggris, anggota tersebut berhak, dengan biaya Perseroan, untuk menggunakan jasa penerjemah untuk rapat tersebut.

		
	 22.  All notices of meeting and papers to be considered at any meeting of the Board of
Commissioners shall be accompanied by an English translation thereof, as shall any other papers that any member of the Board of Commissioners may reasonably request prior to the meeting.
	  	 22.  Seluruh pemberitahuan rapat dan dokumen yang dipertimbangkan pada setiap rapat
Dewan Komisaris harus disertai dengan terjemahan Bahasa Inggris atas pemberitahuan dan dokumen tersebut, sebagaimana dokumen lainnya yang mungkin diminta oleh anggota Dewan Komisaris dapat diminta sebelum rapat.

		
	 23.  Subject to acting in the best interests of the Company and complying with all
applicable laws, the Board of Commissioners (and each individual Commissioner making up the Board of Commissioners) must take steps to
	  	 23.  Dengan ketentuan untuk bertindak demi kepentingan terbaik Perseroan dan mematuhi
semua hukum yang berlaku, Dewan Komisaris (dan setiap anggota individu dari Dewan Komisaris) harus mengambil

  
 118 

			
		
	        implement, and may not act inconsistently with the
LTIP, the annual operating plan and annual financial plan (after giving effect to any amendments thereto or deviations therefrom to the extent permitted by the terms agreed by Freeport and Inalum Group).
	  	        langkah-langkah untuk melaksanakan, dan tidak boleh
bertindak secara inkonsisten dengan LTIP, rencana operasi tahunan dan rencana keuangan tahunan (setelah memberlakukan setiap perubahan atau penyimpangan terhadapnya sejauh diizinkan oleh ketentuan yang disetujui oleh Freeport dan Grup
Inalum).

		
	 Article 19

FINANCIAL YEAR AND ANNUAL REPORT
	  	 Pasal 19

TAHUN BUKU DAN LAPORAN TAHUNAN

		
	 1.  The Board of Directors is required to submit the working plan (namely the annual
operating plan and the annual financial plan) which also includes the Company’s annual budget to the Board of Commissioners or, to the extent required under the Shareholders Agreement, to the GMS to obtain approval prior to the commencement of
a financial year.
	  	 1.  Direksi menyampaikan rencana kerja (yaitu rencana operasional tahunan dan rencana
keuangan tahunan) yang memuat juga anggaran tahunan Perseroan kepada Dewan Komisaris, sepanjang diwajibkan berdasarkan Perjanjian Pemegang Saham, untuk mendapat persetujuan, sebelum tahun buku dimulai.

		
	 2.  Subject to the Shareholders Agreement, the working plan as stipulated in paragraph
1 shall be submitted prior to the commencement of the next financial year.
	  	 2.  Tunduk pada Perjanjian Pemegang Saham, rencana kerja sebagaimana disebutkan dalam
ayat 1 harus diserahkan sebelum dimulainya tahun buku berikutnya.

		
	 3.  The financial year of the Company runs from the 1st (first) day of January and
through the 31st (thirty first) day of December. At the end of December each year, the books of the Company shall be closed.
	  	 3.  Tahun buku dari Perseroan berjalan dari tanggal 1 (satu) Januari sampai dengan 31
(tiga puluh satu) Desember. Pada akhir bulan Desember setiap tahun, buku Perseroan ditutup.

		
	 4.  At the latest within 6 (six) months after the Company’s books are closed, the
Directors shall prepare the annual report according to the provisions prevailing statutory regulations, signed by all members of the Board of Directors and the Board of Commissioners, for submission to the Annual GMS.
	  	 4.  Dalam waktu selambat-lambatnya 6 (enam) bulan setelah buku Perseroan ditutup,
Direksi menyusun laporan tahunan sesuai ketentuan peraturan perundang-undangan yang berlaku, yang ditandatangani oleh semua anggota Direksi dan Dewan Komisaris, untuk diajukan dalam RUPS Tahunan.

		
	 5.  Such annual report must be made available at the office of the Company at the
latest 14 (fourteen) days before the date of the Annual GMS, for inspection
	  	 5.  Laporan tahunan tersebut harus sudah disediakan di kantor Perseroan selambatnya 14
(empat belas) hari sebelum tanggal RUPS Tahunan

  
 119 

			
	 by the shareholders.
	  	 diselenggarakan, agar dapat diperiksa oleh para pemegang saham.

		
	 Article 20

DIVIDEND DISTRIBUTION
	  	 Pasal 20

PEMBAGIAN DIVIDEN

		
	 1.  Dividends shall be declared by the Company in accordance with the Company’s
dividend policy.
	  	 1.  Dividen harus dideklarasikan oleh Perseroan sesuai dengan kebijakan dividen
Perseroan.

		
	 2.  Profit which is distributed as dividends and is not claimed within period of 5
(five) years after it is ready for the payment is to put into the reserve fund specially created for that purpose. The dividends which are in that specific reserve fund may be claimed by a shareholder who has the right to do so before the expiration
of the period of 5 (five) years, by submitting evidence acceptable to the Company’s Board of Directors concerning his rights to those dividends. Dividends which have not been distributed after 10 (ten) years is passed will become the right of
the Company.
	  	 2.  Laba yang dibagikan sebagai dividen yang tidak diambil dalam waktu 5 (lima) tahun
setelah disediakan untuk dibayarkan, dimasukkan ke dalam dana cadangan yang khusus diperuntukkan untuk itu. Dividen dalam dana cadangan khusus tersebut dapat diambil oleh pemegang saham yang berhak sebelum lewatnya jangka waktu 5 (lima) tahun,
dengan menyampaikan bukti haknya atas dividen tersebut yang dapat diterima oleh Direksi Perseroan. Dividen yang tidak diambil setelah lewat 10 (sepuluh) tahun tersebut akan menjadi hak Perseroan.

		
	 Article 21

CONCLUDING PROVISIONS
	  	 Pasal 21

KETENTUAN PENUTUP

		
	 1.  Anything that is not provided for or insufficiently covered in these Articles of
Association or the Shareholders Agreement, will be decided by a GMS.
	  	 1.  Segala sesuatu yang tidak atau belum cukup diatur dalam Anggaran Dasar ini atau
Perjanjian Pemegang Saham, akan diputus dalam RUPS.

  
 120 

 SCHEDULE 6 

Dividend Policy 
 Dividends will be
restricted to the lowest of (a) Available Cash Flow for Dividends; (b) after the Initial Period, an amount equal to the maximum distribution that can be made without resulting in the Leverage Ratio exceeding 4.0 to 1.0, pro forma for the
payment of such dividend; and (c) the amount allowed pursuant to any limitation on distributions imposed by lenders or other counterparties pursuant to a distributions covenant or as a result of financial ratio maintenance requirements. 

“Leverage Ratio” means, as of any time, an amount equal to the quotient of (i) the aggregate principal amount of Total Funded Debt of
the Company outstanding as of such date, in the amount that would be reflected as a liability on a balance sheet prepared as of such date on a consolidated basis in accordance with the Accounting Principles less unrestricted cash of the Company as
of such time, divided by (ii) EBITDA for the twelve-month period ending on or immediately preceding such time. 
 “Indebtedness” of
any Person means, without duplication, (a) all obligations of such Person for borrowed money, (b) all obligations of such Person evidenced by bonds, debentures, notes or similar instruments, (c) all obligations of such Person under
conditional sale or other title retention agreements relating to property acquired by such Person, (d) all obligations of such Person in respect of the deferred purchase price of property or services (excluding trade accounts payable and other
accrued expenses incurred in the ordinary course of business and deferred compensation), (e) all Indebtedness of others secured by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured by) any
lien on property owned or acquired by such Person, whether or not the Indebtedness secured thereby has been assumed, (f) all guarantees by such Person of Indebtedness of others, (g) all Capital Lease Obligations of such Person,
(h) all obligations, contingent or otherwise, of such Person as an account party (including reimbursement obligations to the issuer) in respect of letters of credit and letters of guaranty, which support or secure Indebtedness, (i) all
obligations in respect of prepaid production arrangements, prepaid forward sale arrangements or derivative contracts in respect of which such Person receives upfront payments in consideration of an obligation to deliver product or commodities (or
make cash payments based on the value of product or commodities) at a future time and (j) all obligations, contingent or otherwise, of such Person in respect of bankers’ acceptances. 

“Total Funded Debt” of any Person means Indebtedness of such Person of the types referred to in clauses (a), (b), (c), (d), (g), (i) and
(j) of the definition thereof and all Indebtedness of the types referred to in clauses (e), (f) and (h) of such definition relating to Indebtedness of others of the types referred to in such clauses (a), (b), (c), (d), (g), (i) and (j);
provided, however that Total Funded Debt shall exclude the Make Whole Note referenced in schedule 9. 
 “Capital Lease Obligations” of any
Person means the obligations of such Person to pay rent or other amounts under any lease of (or other arrangement conveying the right to use) real or personal property, or a combination thereof, which obligations are required to be classified and
accounted for as capital or finance leases on a balance sheet of such Person under the 

  
 130 

 
Accounting Principles and the amount of such obligations shall be the capitalized amount thereof determined in accordance with the Accounting Principles. 

“Available Cash Flow for Dividends” means, with respect to any period: 

 

	(a)	 Without duplication, the sum of: 

 

	 	(i)	 cash and short-term investments of the Company included in current assets on the balance sheet at beginning of
the period, excluding short-term Restricted Cash. “Restricted Cash” means amounts that are reserved or otherwise restricted from withdrawal pursuant to laws, regulations or contractual arrangements with financial institutions or
other third parties, including cash to secure financial assurance instruments. 

  

	 	(ii)	 cash flow from operations of the Company during such period, 

 

	 	(iii)	 cash proceeds from the sale of assets by the Company during such period, net of transaction costs,

  

	 	(iv)	 cash proceeds from the issuance of debt by the Company during such period, 

 

	 	(v)	 cash proceeds from cash calls by the Company during such period, 

 

	 	(vi)	 reductions in Restricted Cash (to the extent received by the Company) during such period and

  

	 	(vii)	 repayments to the Company from Company Subsidiaries or joint ventures of the Company of investments or loans
during such period; 

 minus 
  

	(b)	 without duplication, the sum of: 

 

	 	(i)	 increases in Restricted Cash during such period, 

 

	 	(ii)	 capital expenditures of the Company (including capitalized interest) during such period, 

 

	 	(iii)	 investments by the Company in or loans to Company Subsidiaries or joint ventures during such period,

  

	 	(iv)	 debt service by the Company during such period, 

 

	 	(v)	 dividends paid by the Company during such period, 

 

	 	(vi)	 cash reserves necessary to address forecasted expenditures in excess of forecasted available cash,

  
 131 

	 	(vii)	 any other cash expenditures not included in the above items in this clause (b) (including, to the extent not
otherwise included above in this clause (b), Monthly Deficit Payments referenced in schedule 9 made during such period); 

 provided that
for purposes of calculating the amounts for each of the items above, 
  

	 	(A)	 amounts attributable to Company Subsidiaries that are consolidated in accordance with the Accounting Principles
will be excluded, 

  

	 	(B)	 actual cash payments to or from Company Subsidiaries in the form of dividends, distributions, investments or
advances will be included, and 

  

	 	(C)	 amounts will be determined in accordance with the Accounting Principles. “Accounting
Principles” means Indonesian generally accepted accounting principles using the assumptions, classifications, judgments, practices, and methodologies used in the preparation of the Company’s audited financial statements.

  
 132 

 SCHEDULE 7 

Operating Committee Authority 
  

	(a)	 The Board of Directors shall delegate its full authority (including a delegation of the right to make all
decisions) with respect to mining, development and planning, exploration, concentrating, technical services, power services, port-site operations, smelter activities, health & safety, security, environmental management, purchasing and
logistics, and jobsite-based human resources & administration, in each case with respect to the Company and the Company Subsidiaries. 

  

	(b)	 The Board of Directors may, in addition to the delegation contemplated by paragraph (a) above, also
delegate limited authority to the Operating Committee to undertake operations in the ordinary course with the Board of Directors retaining oversight authority to direct the Operating Committee on its approach to the relevant functions. The Operating
Committee will give periodic reports to the Board of Directors and respond to any other reporting requests received from the Board of Directors from time to time with respect to any functions that are delegated to the Operating Committee.

  

	(c)	 The Board of Directors shall have full authority to oversee strategy, government relations, internal
communications, external affairs, sales and marketing, environmental strategy, security assessment, finance, accounting, tax, community development, legal, compliance, corporate social responsibility, strategic procurement advice, Jakarta-based
human resources, and Jakarta-based administration, in each case with respect to the Company and the Company Subsidiaries. 

  
 133 

 SCHEDULE 9 

Economics Replacement During the Initial Period 

  
 165 

 ARTICLE 1 

DEFINITIONS 

Section 1.01. Definitions. 
 Capitalized terms used
herein but not defined shall have the meanings ascribed to them in the Agreement. As used in this Schedule, the following terms have the following meanings: 

“Accounting Principles” means Indonesian generally accepted accounting principles using the assumptions, classifications, judgments,
practices, and methodologies used in the preparation of the Company’s audited financial statements. 
 “Adjustment Date” means the
last day of each calendar quarter. In addition, if the Company makes a payment under the Make Whole Note, the date of such payment shall be treated as an Adjustment Date. 

“Available Cash Flows” means, with respect to any period: 
  

	(a)	 without duplication, the sum of (i) the cash and short term investments of the Company included in current
assets on the balance sheet at the beginning of such period, excluding Restricted Cash, (ii) cash flow from operations of the Company during such period, (iii) cash proceeds from the sale of assets by the Company during such period, net of
transaction costs, (iv) cash proceeds from the issuance of debt by the Company during such period, (v) cash proceeds from cash calls by the Company during such period, (vi) reductions in Restricted Cash (to the extent received by the
Company) during such period and (vii) repayments to the Company from subsidiaries or joint ventures of the Company of investments or loans during such period; minus 

 

	(b)	 without duplication, the sum of (i) increases in Restricted Cash during such period, (ii) capital
expenditures of the Company (including capitalized interest) during such period, (iii) investments by the Company in or loans to its subsidiaries or joint ventures during such period, (iv) debt service by the Company during such period,
(v) dividends paid by the Company during such period that were declared from the Available Cash Flow in any preceding period; and (vi) any other cash expenditures not included in the above items in this clause (b) (including, to the extent
not otherwise included above in this clause (b), Monthly Deficit Payments referenced in this schedule made during such period); 

provided that for purposes of calculating the amounts for each of the items above, (A) amounts attributable to subsidiaries of the Company that
are consolidated in accordance with the Accounting Principles will be excluded, (B) actual cash payments to or from subsidiaries of the Company in the form of dividends, distributions, investments or advances will be included, and
(C) amounts will be determined in accordance with the Accounting Principles. 
 “Copper Target” means 3,797,327,822 pounds. 

“Cut-Off Date Copper Volume Deficit” means (i) as of the end of the Initial Period 

  
 166 

	 	(a)	 the Copper Target; minus 

 

	 	(b)	 the Company’s cumulative production and sales thereof of recovered copper in concentrates following the
date hereof and prior to the end of the Initial Period, 

 multiplied by (ii) 96.5%. 

For the avoidance of doubt, the Cut-Off Date Copper Volume Deficit shall not be less than zero. 

“Cut-Off Date Gold Volume Deficit” means (i) as of the end of the Initial Period

  

	 	(a)	 the Gold Target; minus 

 

	 	(b)	 the Company’s cumulative production and sales thereof of recovered gold in concentrates following the date
hereof and prior to the end of the Initial Period, 

 multiplied by (ii) 97%. 

For the avoidance of doubt, the Cut-Off Date Gold Volume Deficit shall not be less than zero. 

“Eligible Volume” means, with respect to any calendar month, (a) with respect to copper, the lesser of (i) the
pounds of payable copper sold by the Company in such month and (ii) 86,000,000 pounds; provided that such amount shall not exceed the Cut-Off Date Copper Volume Deficit less the Eligible Volume of copper with
respect to which Monthly Deficit Payments were made pursuant to Section 2.03 in respect of prior calendar months, and (b) with respect to gold, the lesser of (i) the ounces of payable gold sold by the Company in such month and (ii)
122,000 ounces; provided that such amount shall not exceed the Cut-Off Date Gold Volume Deficit less the Eligible Volume of gold with respect to which Monthly Deficit Payments were made pursuant to
Section 2.03 in respect of prior calendar months. 
 “Exchange Assignment Percentage” means, with respect to any
Exchange Shareholder at any time, a fraction (expressed as a percentage), (i) the numerator of which is the total number of Exchange Shares owned by such Exchange Shareholder as of such time, and (ii) the denominator of which is the total
number of outstanding Exchange Shares as of such time. 
 “Exchange Share Percentage” means, as of any time, a fraction
(expressed as a percentage), (i) the numerator of which is the total number of Exchange Shares outstanding as of such time, and (ii) the denominator of which is the total number of outstanding Ordinary Shares as of such time. 

“Exchange Shareholders” means the holders of Exchange Shares in their capacity as such. 

“Exchange Shares” means the Ordinary Shares issued pursuant to the Subscription Agreement dated as of 27 September 2018
among the Company, Inalum and PTIPMM. 

  
 167 

 “Gold Target” means 5,250,350 ounces. 

“Initial Period” means the period ending on the earlier of (a) December 31, 2022 and (b) the Volume Target
Date. 
 “Interest Rate” means a daily rate expressed as a percentage equal to LIBOR plus 6.00% per calendar year,
divided by 365 or 366 calendar days, as the case may be, during such calendar year. 
 “Monthly Deficit Payment” has the
meaning set forth in Exhibit B. 
 “Ordinary Shares” means the ordinary shares of the Company, and any other security into
which such shares may hereafter be converted or changed. 
 “Payment Return” means an amount calculated as of each
Adjustment Date, beginning on the second Adjustment Date, equal to the sum of the amounts determined for each day (including such Adjustment Date) since the immediately preceding Adjustment Date by multiplying the Interest Rate by the sum of
(i) the Unpaid Post-Cut-Off Payments and (ii) the Unpaid Payment Interest, in each case as of the immediately preceding Adjustment Date. 

“Pre-Exchange Percentage Interest” means, with respect to any Pre-Exchange Shareholder at any time, a fraction (expressed as a percentage), (i) the numerator of which is the total number of Pre-Exchange Shares owned by such Pre-Exchange Shareholder as of such time, and (ii) the denominator of which is the total number of outstanding Pre-Exchange Shares as of such time. 

“Pre-Exchange Shareholders” means the holders of
Pre-Exchange Shares, in their capacity as such. 

“Pre-Exchange Shares” means the Ordinary Shares outstanding as of immediately prior to
the date hereof. 
 “Restricted Cash” means cash amounts of the Company that are reserved or are otherwise restricted from
withdrawal pursuant to laws, regulations or contractual arrangements with financial institutions or other third parties, including cash to secure financial assurance instruments. 

“Smelter Project” means the new smelting and refining facility, including precious metal refining, required to be developed by
the Company pursuant to the IUPK. 
 “Specified Expansion Project” means New Power Generation, SAG Pre-Crushers and C3 Ball Mill. 
 “Unpaid Assigned Payments” means, at any time, the sum
of (i) the Unpaid Post-Cut-Off Payments as of such time and (ii) the Unpaid Payment Interest as of such time. 

“Unpaid Payment Interest” means, as of each Adjustment Date beginning on the second Adjustment Date, (i) the Unpaid
Payment Interest as of the previous Adjustment Date plus (ii) the Payment Return since the previous Adjustment Date 

  
 168 

 
minus (iii) the amount of repayments since the previous Adjustment Date that are deemed to be payments of Unpaid Payment Interest in accordance with Section 3.06(b). 

“Unpaid Post-Cut-Off Payments” means, as of
any time, the aggregate amount of any capital call(s) the Exchange Shareholders have failed to pay in accordance with Section 3.02 or Section 3.03 or Section 3.04 as of such time. 

“Volume Target Date” means the later of (a) the date on which the Company’s cumulative production and sales thereof
of recovered copper in concentrates following the date hereof exceeds the Copper Target and (b) the date on which the Company’s cumulative production and sales thereof of recovered gold in concentrates following the date hereof exceeds the
Gold Target. For purposes of this determination, if such date occurs (i) during the first half of a month, the Volume Target Date will be deemed to be the last day of the immediately preceding month and (ii) during the second half of a
month, the Volume Target Date will be deemed to be the last day of such month. 
 ARTICLE 2 

DIVIDEND ASSIGNMENT; REIMBURSEMENT 

Section 2.01. Dividend Assignment. 

(a)    Pre-Cut-Off Dividends. 

Each Exchange Shareholder (each in such capacity, an “Assignor”) hereby assigns to the
Pre-Exchange Shareholders (pro rata in accordance with their respective Pre-Exchange Percentage Interest) all of such Assignor’s right, title and interest in
and to all dividends of Available Cash Flows generated on or prior to the end of the Initial Period. 
 For the avoidance of doubt, dividends
of Available Cash Flows generated on or prior to the end of the Initial Period may be made following the end of the Initial Period and will remain subject to this provision. 

(b)    Payment of Assigned Dividends. 

With respect to any dividend assigned to the Pre-Exchange Shareholders pursuant to Section 2.01(a)
, the Parties hereby agree that the Company shall make the payment of such assigned dividends directly to the applicable Pre-Exchange Shareholders (and not to the Assignors). 

Section 2.02 Adjustments to Dividends. 

(a)    Overpayment during Pre-Cut Off Date. 

To the extent that following the end of the Initial Period the Company: 

 

	 	i.	 overpaid taxes with respect to the period prior to the end of the Initial Period; or 

  
 169 

	 	ii.	 receives a payment relating to an extraordinary event occurring prior to the end of the Initial Period,

 the amount of such overpayment or payment shall be deemed Available Cash Flows generated prior to the end of the
Initial Period and, promptly following receipt of the related tax refund or payment, be distributed to the Shareholders as a dividend (and, for the avoidance of doubt, Section 2.01(a) would apply to such dividend). 

(b)    Underpayment during Pre-Cut Off Date. 

To the extent that following the end of the Initial Period the Company: 

 

	 	i.	 determines or is subject to a ruling that it has underpaid or failed to pay taxes with respect to the period
prior to the end of the Initial Period; or 

  

	 	ii.	 incurs costs or payments (excluding costs and payments relating to the Smelter Project) attributable to an
extraordinary event occurring prior to the end of the Initial Period; or 

  

	 	iii.	 Available Cash Flows are reduced in respect of the repayment of third party debt or Shareholder Loans
(including interest thereon) incurred prior to the end of the Initial Period (other than third party debt or Shareholder Loans made to fund the Smelter Project),  

then such amount shall be applied as a reduction of Available Cash Flows generated prior to the end of the Initial Period and, to the extent
dividends paid to the Shareholders with Available Cash Flows generated prior to the end of the Initial Period exceed such reduced amount of Available Cash Flows generated prior to the end of the Initial Period, then within five Business Days
following such determination, incurrence of cost or payment or reduction in Available Cash Flows, each Pre-Exchange Shareholder shall pay to the Exchange Shareholders (pro rata in accordance with their
respective Exchange Assignment Percentage) an amount equal to such Pre-Exchange Shareholder’s Pre-Exchange Percentage Interest of such excess multiplied by the
Exchange Share Percentage in immediately available funds to an account or accounts designated by the Exchange Shareholders, with the effect that the Shareholders receive such amount in proportion to their respective Percentage Interests. 

Section 2.03 Make Whole Note. 
  

	(a)	 Notwithstanding anything in the Dividend Policy to the contrary, within 30 days after the end of the Initial
Period, the Company shall issue a dividend payable as a note equal to the Monthly Deficit Payments payable in respect of the: 

  

	 	i.	 Cut-Off Date Copper Volume Deficit; and 

 

	 	ii.	 Cut-Off Date Gold Volume Deficit, 

  
 170 

 (the “Make Whole Note”). The Make Whole Note will be repaid in monthly
installments on the 20th day following the end of each calendar month in an amount equal to the Monthly Deficit Payment payable with respect to the calendar month immediately preceding the month in which the payment is made. 

 

	(b)	 Each Exchange Shareholder hereby assigns to the Pre-Exchange
Shareholders (pro rata in accordance with their respective Pre-Exchange Percentage Interest) all of such Assignor’s right, title and interest in and to the Monthly Deficit Payments.

  

	(c)	 The Make Whole Note shall not bear interest. 

 

	(d)	 The Make Whole Note shall be repaid out of Available Cash Flow generated following the end of the Initial
Period without duplication, in priority to any dividends to the Shareholders. 

  

	(e)	 Any Available Cash Flows generated in calendar months following the end of the Initial Period in excess of the
Monthly Deficit Payment for such month shall be distributed to the Shareholders as a dividend, subject to Section 3.06(b) and the Dividend Policy. 

  

	(f)	 Within 30 days following each Adjustment Date, the Company shall provide the Shareholders a schedule setting
forth the Cut-Off Copper Volume Deficit and Cut-Off Gold Volume Deficit less Eligible Volumes of copper and gold used in the calculation of Monthly Deficit Payments paid
in respect of the Make Whole Note. 

  

	(g)	 If there is a Close-down of the Company, the Make Whole Note will be cancelled and the Pre-Exchange Shareholders waive any and all rights to be repaid any amount of the Make Whole Note that remains outstanding at the time. 

 

	(h)	 Solely for accounting purposes, the parties intend to adjust the nominal value of the Make Whole Note as
payments are made pursuant to this Section 2.03 in a manner that tracks as closely as possible to the fair market value of the liability (it being understood and agreed that this Section 2.03(h) shall not have any impact on the actual cash
payments required to be made under this Section 2.03). 

 ARTICLE 3 

FINANCING; FUNDING; SHAREHOLDER LOANS 

Section 3.01. Project Financing. 
 Subject to the
terms of the Shareholders Agreement, the Shareholders acknowledge that the Company intends to seek to secure third party project financing with a target to maximize the funds for the development of the Smelter Project in the form of third party
debt. 

  
 171 

 Section 3.02. Expansion Capex Payments. 

 

	(a)	 Subject to Section 3.02(b), in equal quarterly installments on the 20th day following the end of each calendar quarter of each calendar year up to the end of the Initial Period, the Exchange Shareholders (pro rata in accordance with their respective Exchange
Assignment Percentage) shall pay to the Company as a capital contribution the amounts set forth in Exhibit A under the column “40% Share” for such calendar year (“Fixed Capital Payment”); provided that, in the event
the end of the Initial Period occurs on a date other than the last day of a calendar quarter, the last Fixed Capital Payment shall be due 20 days following the end of the Initial Period and shall be reduced proportionately based on the number of
days that elapsed from the end of the prior calendar quarter through the end of the Initial Period. For the avoidance of doubt, all Fixed Capital Payments shall be deemed Available Cash Flows generated prior to the end of the Initial Period,
including the last Fixed Capital Payment, which will be required to be made 20 days following the end of the Initial Period. 

  

	(b)	 If any of the Specified Expansion Projects are deferred or cancelled and as a result of which the
Company’s aggregate spending on such Specified Expansion Project is less than what was projected to be spent in the applicable period when deriving the Fixed Capital Payments set forth on Exhibit A, then a proportionate amount of the Fixed
Capital Payment corresponding to the unspent amounts with respect to such Specified Expansion Project for that calendar quarter will be deferred to the calendar quarter in which the corresponding cost for such Specified Expansion Project is incurred
or cancelled, as applicable. 

  

	(c)	 Notwithstanding anything in this Section 3.02 but without limiting the obligations of all Shareholders to
make capital contributions in accordance with Section 3.05(b), any amount of Fixed Capital Payments that are not incurred prior to the end of the Initial Period, are cancelled and are not required to be paid by the Exchange Shareholders .

 Section 3.03 Smelter Payments. 

On the 20th day following the end of each calendar quarter up to the end of the Initial Period (and, if
the end of the Initial Period does not fall on the last day of a calendar quarter, on the 20th day following the end of the Initial Period), the Exchange Shareholders (pro rata in
accordance with their respective Exchange Assignment Percentage) shall pay to the Company as a capital contribution the following amounts (and, for the avoidance of doubt, all such capital contributions shall be deemed Available Cash Flows generated
prior to the end of the Initial Period): 
  

	 	(i)	 the amount by which Available Cash Flows generated in the applicable calendar quarter are reduced in respect of
the Exchange Share Percentage of costs of the Company associated with the Smelter Project (excluding any such costs incurred prior to the date hereof), whether in the form of capital costs, equity contributions or loans to a project company, debt
service, treatment and refining charges, cash costs incurred for purposes of credit 

  
 172 

	 	
support or otherwise, and any other payments relating to the Smelter Project; plus  

  

	(ii)	 without duplication of the amounts described in clause (i): 

 

	 	(A)	 the Exchange Share Percentage of Restricted Cash as of the date hereof to the extent relating to the Smelter
Project ; and 

  

	 	(B)	 the Exchange Share Percentage of any increases in Restricted Cash in the applicable calendar quarter to the
extent such increases relate to the Smelter Project; less 

 in the case of each of clause (A) and (B),
the Exchange Share Percentage of any reductions in Restricted Cash (to the extent received by the Company) in the applicable calendar quarter to the extent such reductions relate to the to the Smelter Project); minus 

 

	(iii)	 the Exchange Share Percentage of the aggregate amount of capital calls and Shareholder Loans made in the
applicable calendar quarter to fund the Smelter Project. 

 Section 3.04 Restricted Cash Payment 

On the 20th day following the end of the Initial Period, the Exchange Shareholders (pro rata in accordance
with their respective Exchange Assignment Percentage) shall pay to the Company as a capital contribution the Exchange Share Percentage of Restricted Cash as of the end of the Initial Period to the extent relating to any obligations that will arise
or occur after the end of the Initial Period (other than relating to the Smelter Project). All such capital contributions shall be deemed Available Cash Flows generated prior to the end of the Initial Period. 

Section 3.05. Funding. 
  

	(a)	 Initial Period. 

 

	 	(i)	 General. All capital calls made by the Company prior to the end of the Initial Period (other than
capital calls in respect of the Smelter Project and any capital calls under Section 3.03) shall be funded by the Pre-Exchange Shareholders pro rata in accordance with their respective Pre-Exchange Percentage Interests, and the Exchange Shareholders shall bear no liability for such capital calls. 

  

	 	(ii)	 Smelter Project. All capital calls made by the Company prior to the end of the Initial Period in respect
of the Smelter Project (other than capital calls made pursuant to Section 3.03) shall be funded by all Shareholders pro rata in accordance with their respective Percentage Interests. 

  
 173 

	(b)	 Post-Initial Period. 

Following the end of the Initial Period, all capital calls made by the Company shall be funded by all Shareholders pro rata in
accordance with their respective Percentage Interests. 
 Section 3.06 Failure to Fund 

 

	(a)	 General. 

If any Shareholder fails to fund any capital call it is required to fund in accordance with Section 3.05 and any other Shareholder is
willing to provide the Company with the funds sufficient to meet the obligations required by such capital call, all Shareholders who fund such capital call shall be required to fund such capital call by way of a Shareholder Loan at an interest rate
of LIBOR plus 6% per annum. The principal and interest on Shareholder Loans shall be repaid in priority to any dividends to the Shareholders; provided that all Shareholder Loans made to fund obligations relating to the Smelter Project
shall not be repayable until after the end of the Initial Period. 
  

	(b)	 Smelter and Expansion Capex.  

An amount equal to (i) 250% multiplied by (ii) Unpaid Assigned Payments will be repaid by the Company to the Pre-Exchange Shareholders (pro rata based on their respective Pre-Exchange Percentage Interest) out of Available Cash Flows generated following the end of the Initial
Period in priority to any dividends to the Shareholders, but following the payments to be made under Section 2.03. Repayments under this Section 3.06(b) shall (i) first, be deemed payments of Unpaid Payment Interest until the Unpaid
Payment Interest is equal to zero and (ii) second, be deemed payments of Unpaid Post-Cut-Off Payments. 

  
 174 

 Exhibit A – Expansion Capex Schedule 

  
 175 

 Exhibit A — Expansion Capex Schedule 

$ millions 
  

																																	
	 	  	 	 	  	 	 	 	Specified Expansion Project	 
	 	  	 	 	  	 	 	 	Aggregate	 	  	40% Share	 
	 	  	Aggregate	 	  	40%
Share	 	 	New Power
Generation	 	  	SAG
Pre-Crushers	 	  	C3
Ball Mill	 	  	New Power
Generation	 	  	SAG
Pre-Crushers	 	  	C3
Ball Mill	 
	 2018
	  	$	325	 	  	$	130	 	 	$	0	 	  	$	1	 	  	$	0	 	  	$	0	 	  	$	1	 	  	$	0	 
	 2019
	  	 	322	 	  	 	129	 	 	 	0	 	  	 	39	 	  	 	2	 	  	 	0	 	  	 	16	 	  	 	1	 
	 2020
	  	 	413	 	  	 	165	 	 	 	25	 	  	 	64	 	  	 	20	 	  	 	10	 	  	 	26	 	  	 	8	 
	 2021
	  	 	468	 	  	 	187	 	 	 	36	 	  	 	116	 	  	 	50	 	  	 	14	 	  	 	46	 	  	 	20	 
	 2022
	  	 	474	 	  	 	190	 	 	 	213	 	  	 	60	 	  	 	28	 	  	 	85	 	  	 	24	 	  	 	11	 

 Exhibit B – Monthly Deficit Payment 

“Monthly Deficit Payment” means, with respect to any calendar month, (a) Pre-Tax Deficit Payment
with respect to such month multiplied by (b) 75% minus (c) Net Profits Tax with respect to such month. 
 *** 

“Pre-Tax Deficit Payment” means, with respect to any calendar month, (a) Deficit Net Revenues
with respect to such calendar month minus (b) Deficit Cost Share with respect to such calendar month. 
 “Deficit Net Revenues”
means, with respect to any calendar month, (a) Deficit Copper Revenue with respect to such calendar month, plus (b) Deficit Gold Revenue with respect to such calendar month, minus (c) Deficit Copper TC/RCs with respect
to such calendar month, minus (d) Deficit Gold RCs with respect to such calendar month, minus (e) Deficit Copper Royalties with respect to such calendar month, minus (f) Deficit Gold Royalties with respect to such
calendar month, minus (g) Deficit Freight Cost with respect to such calendar month, minus (h) Deficit FFIJD Cost with respect to such calendar month. 

“Deficit Copper Revenue” means, with respect to any calendar month, (a) Eligible Volume of copper in such month multiplied by
(b) the average copper price, before any deductions for TC/RCs, realized by the Company in such month. 
 “Deficit Gold Revenue”
means, with respect to any calendar month, (a) Eligible Volume of gold in such month multiplied by (b) the average gold price, before any deductions for TC/RCs, realized by the Company in such month. 

“Deficit Copper TC/RCs” means, with respect to any calendar month, (a) actual Copper TC/RCs incurred on a $/lb basis on sales to PT
Smelting multiplied by (b) Eligible Volume of copper for such calendar month. 
 “Deficit Gold RCs” means, with respect to any
calendar month, (a) actual Gold RCs incurred on a $/oz basis on sales to PT Smelting multiplied by (b) Eligible Volume of gold for such calendar month. 

“Deficit Copper Royalties” means, with respect to any calendar month, (a) 4.00% multiplied by (b) (i) Deficit Copper Revenue for
such month, minus (ii) Deficit Freight Cost for such month minus (iii) Deficit Copper TC/RCs for such month. 
 “Deficit
Gold Royalties” means, with respect to any calendar month, (a) 3.75% multiplied by (b) (i) Deficit Gold Revenue for such month minus (ii) Deficit Gold RCs for such month. 

“Deficit Freight Cost” means, with respect to any calendar month, (a) Eligible Volume of copper for such month multiplied
by (b) the Company’s average per pound freight cost for such month. 
 “Deficit FFIJD Cost” means, with respect to any
calendar month, (a) 1.00% multiplied by (b) (i) Deficit Copper Revenue for such month, plus (ii) Deficit Gold Revenue for such month, minus (iii) Deficit Copper TC/RCs for such month, minus
(iv) Deficit Gold RCs for such 

  
 176 

 
month, minus (v) Deficit Copper Royalties for such month minus (vi) Deficit Gold Royalties for such month. 

“Deficit Cost Share” means, with respect to any calendar month, (a) the sum of the Company’s site operating costs for such month
(excluding FFIJD and smelter costs), the Company’s general and administrative (G&A) expenses for such calendar month as set forth in the Company’s income statement for such month (excluding smelter-related expenses) and the
Company’s sustaining capital for such month as set forth in the Company’s cash flow statement for such month (excluding smelter) multiplied by (b) the Deficit Sharing Ratio for such month. 

“Deficit Sharing Ratio” means, with respect to any calendar month, (a) Deficit Net Revenues for such month divided by
(b) Company Net Revenues for such month. 
 “Company Net Revenues” means, with respect to any calendar month, (a) the
Company’s gross revenue for such month (including copper, gold and silver), minus (b) the Company’s TC/RCs for such month as set forth on the Company’s income statement for such month, minus (c) royalties of
the Company in respect of copper, gold and silver for such month as set forth on the Company’s income statement for such month, minus (d) the Company’s concentrate freight cost for such month as set forth on the Company’s
income statement for such month, minus (e) the Company’s FFIJD for such month (calculated as (x) 1% of (y) the Company’s gross revenue for such month (including copper, gold and silver) less the amounts deducted pursuant
to clauses (b) and (c) of this definition). 
 *** 

“Net Profits Tax” means, with respect to any calendar month, (a) 10% multiplied by (b) (A) (i)
Pre-Tax Deficit Payment for such month, plus (ii) Deficit Sustaining Capital for such month, minus (iii) Deficit Book Depreciation for such month multiplied by (B) 75%. 

“Deficit Sustaining Capital” means, with respect to any calendar month, (a) the Company’s sustaining capital for such month as set
forth in the Company’s cash flow statement for such month (excluding smelter) multiplied by (b) the Deficit Sharing Ratio for such month. 

“Deficit Book Depreciation” means, with respect to any calendar month, (a) the depreciation, depletion and amortization (DD&A) of
the Company for such month as set forth on the Company’s income statement for such month (excluding smelter) multiplied by (b) the Deficit Sharing Ratio for such month. 

*** 
 An example of the calculation is set forth below: 

  
 177EX-10.6

 Exhibit 10.6 

[Indonesia National Emblem] 

MINISTER OF ENERGY AND MINERAL RESOURCES 

OF THE REPUBLIC OF INDONESIA 

DECREE OF THE MINISTER OF ENERGY AND MINERAL RESOURCES OF 

THE REPUBLIC OF INDONESIA 
 NUMBER
2053 K/30/MEM/2018 
 REGARDING 

PRODUCTION OPERATION SPECIAL MINING BUSINESS LICENSE 

PT FREEPORT INDONESIA 
 BY THE GRACE
OF GOD ALMIGHTY 
 THE MINISTER OF ENERGY AND MINERAL RESOURCES 

OF THE REPUBLIC OF INDONESIA 
  

							
	Considering	  	:	  	a.	  	whereas PT Freeport Indonesia has been granted a Special Mining Business License for Production Operation pursuant to the Decree of the Minister of Energy and Mineral Resources Number 431 K/30/MEM/2017 dated 10 February 2017
regarding Special Mining Business License for Production Operation to PT Freeport Indonesia as amended several times lastly by the Decree of the Minister of Energy and Mineral Resources Number 2022 K/30/MEM/2018 dated 30 November 2018 regarding
Ninth Amendment to the Decree of the Minister of Energy and Mineral Resources Number 431 K/30/MEM/2017 dated 10 February 2017 regarding Special Mining Business License for Production Operation to PT Freeport Indonesia;
				
		  		  	b.	  	whereas based on completion of adjustment of implementation of the Special Mining Business License for Production Operation as well as to provide legal certainty and business certainty for operation continuation, it is needed to
determine again the Special Mining Business License for Production Operation to PT Freeport Indonesia;
				
		  		  	c.	  	whereas PT Freeport Indonesia has fulfilled the requirements and shown good operational performance to obtain the Special Mining Business License for Production Operation as meant in letter b;

  -
 2
 - 
  

							
		  	d.	  		  	whereas based on the considerations as referred to under letter a, letter b, and letter c, it is necessary to stipulate a Decree of the Minister of Energy and Mineral Resources regarding the Special Mining Business License for
Production Operation for PT Freeport Indonesia;
				
	In view of	  	:	  	1.	  	Law Number 41 of 1999 regarding Forestry (State Gazette of the Republic of Indonesia of 1999 Number 167, Supplement to State Gazette of the Republic of Indonesia Number 3888) as amended by Law Number 19 of 2004 regarding
Determination of the Government Regulation in lieu of Law Number 1 Year 2004 regarding Amendment to Law Number 41 of 1999 regarding Forestry to become a Law (State Gazette of the Republic of Indonesia of 2004 Number 86, Supplement to State Gazette
of the Republic of Indonesia Number 4412);
				
		  		  	2.	  	Law Number 25 of 2007 regarding Capital Investment (State Gazette of the Republic of Indonesia of 2007 Number 67, Supplement to State Gazette of the Republic of Indonesia Number 4724);
				
		  		  	3.	  	Law Number 4 of 2009 regarding Mineral and Coal Mining (State Gazette of the Republic of Indonesia of 2009 Number 4, Supplement to State Gazette of the Republic of Indonesia Number 4959);
				
		  		  	4.	  	Law Number 32 of 2009 regarding Environmental Protection and Management (State Gazette of the Republic of Indonesia of 2009 Number 140, Supplement to State Gazette of the Republic of Indonesia Number 5059);
				
		  		  	5.	  	Government Regulation Number 23 of 2010 regarding Implementation of Mineral and Coal Mining Business Activities (State Gazette of the Republic of Indonesia of 2010 Number 29, Supplement to State Gazette of the Republic of Indonesia
Number 5111) as amended several times lastly by Government Regulation Number 8 of 2018 regarding Fifth Amendment to the Government Regulation Number 23 of 2010 regarding Realization of Mineral and Coal Mining Business Activities (State Gazette of
the Republic of Indonesia Supplement to State Gazette of the Republic of Indonesia Number 6186);

  -
 3
 - 
  

							
		  		  	6.	  	Government Regulation Number 37 of 2018 regarding Treatment of Taxation and/or Non-Tax State Revenues in the Business Field of Mineral Mining (State Gazette of the Republic of Indonesia of
2018 Number 122, Supplement to State Gazette of the Republic of Indonesia Number 6234)
				
		  		  	7.	  	Presidential Regulation Number 68 of 2015 regarding Ministry of Energy and Mineral Resources (State Gazette of the Republic of Indonesia of 2015 Number 132) as amended by Presidential Regulation Number 105 of 2016 regarding
Amendment to Presidential Regulation Number 68 of 2015 regarding Ministry of Energy and Mineral Resources (State Gazette of the Republic of Indonesia of 2016 Number 289);
				
		  		  	8.	  	Minister of Energy and Mineral Resources Regulation Number 13 of 2016 regarding Organization and Working Procedures of the Ministry of Energy and Mineral Resources (State News of the Republic of Indonesia of 2016 Number
782);
				
		  		  	9.	  	Minister of Energy and Mineral Resources Regulation Number 09 of 2017 regarding Procedure of Shares Divestment and Mechanism of Price Determination of Shares Divestment in the Mineral and Coal Mining Business (State News of the
Republic of Indonesia of 2017 Number 147) as amended by the Minister of Energy and Mineral Resources Regulation Number 43 of 2018 regarding the Amendment of the Minister of Energy and Mineral Resources Regulation Number 09 of 2017 regarding
Procedure of Shares Divestment and Mechanism of Price Determination of Shares Divestment in the Mineral and Coal Mining Business (State News of the Republic of Indonesia of 2018 Number 1371);
				
		  		  	10.	  	Minister of Energy and Mineral Resources Regulation Number 11 of 2018 regarding Procedures for Granting of Areas, Licensing, and Reporting in the Mineral and Coal Mining Business (State News of the Republic of Indonesia of 2018
Number 295) as amended several times lastly by Minister of Energy and Mineral Resources Regulation Number 51 of 2018 regarding Second Amendment to the Minister of Energy and Mineral Resources Regulation Number 11 of 2018 regarding
Procedures

  -
 4
 - 
  

							
		  		  		  	for Granting of Areas, Licensing, and Reporting in the Mineral and Coal Mining Business (State News of the Republic of Indonesia of 2018 Number 1592);
				
		  		  	11.	  	Minister of Energy and Mineral Resources Regulation Number 25 of 2018 regarding Mineral and Coal Mining Enterprises (State News of the Republic of Indonesia of 2018 Number 595) as amended by the Minister of Energy and Mineral
Resources Regulation Number 50 of 2018 regarding Amendment to the Minister of Energy and Mineral Resources Regulation Number 25 of 2018 regarding Mineral and Coal Mining Enterprises (State News of the Republic of Indonesia of 2018 Number
1591);
				
		  		  	12.	  	Minister of Energy and Mineral Resources Regulation Number 26 of 2018 regarding Implementation of Good Mining Norms and Supervision of Mineral and Coal Mining (State News of the Republic of Indonesia of 2018 Number 596);
				
	In observation of	  	:	  	1.	  	Agreement between the Government of the Republic of Indonesia, Government of Papua Province, Government of Mimika Regency, and PT Indonesia Asahan Aluminum (Persero) concerning Divestment Share Transfer of PT Freeport Indonesia on
12 January 2018;
				
		  		  	2.	  	Letter from the Minister of Energy and Mineral Resources Number 3156/30/MEM.B/2018 dated 18 December 2018 regarding Approval of the Changes to the Shares Ownership of PT Freeport Indonesia;
				
		  		  	3.	  	Letter from the Minister of Energy and Mineral Resources Number 3173/30/MEM.B/2018 dated 21 December 2018 regarding Approval of the Changes to the Board of Directors and Board of Commissioners of PT Freeport
Indonesia;
				
		  		  	4.	  	Letter of the Head of Investment Coordinating Board (BKPM) Number 478/A.1/2018 dated 21 December 2018 regarding Investment Protection for PT Freeport Indonesia;
				
		  		  	5.	  	Letter of the Director of PT Freeport Indonesia Number 105498/16.01/XII/2018 dated 17 December 2018 regarding

  -
 5
 - 
  

							
		  		  		  	Application of the Conversion of the Form of Mining Business and Extension to the Operation Period until 2041;

DECIDES: 
  

									
	To stipulate	  	:	  	DECREE OF THE MINISTER OF ENERGY AND MINERAL RESOURCES REGARDING SPECIAL MINING BUSINESS LICENSE FOR PRODUCTION OPERATION PT FREEPORT INDONESIA.
			
	FIRST	  	:	  	To grant a Special Mining Business License for Production Operation as a conversion of the form of the mining business operations from the Contract of Work, which is hereinafter referred to as the Production Operation
IUPK, to:
					
		  		  	 a. Business Entity Name
	  	:	  	PT FREEPORT INDONESIA
					
		  		  	 b. Business Entity Address
	  	:	  	 Plaza 89 5th Floor
 Jl. H.R. Rasuna Said

Kav. X-7 No. 6, Jakarta

12940

			
		  		  	 c. Name of Directors/Commissioners

					
		  		  	 •  President Director
	  	:	  	 Clayton Allen Wenas
 (Tony Wenas)

					
		  		  	 Taxpayer Registration Number (NPWP)/Temporary Stay Permit Card (KITAS)
	  	 :
	  	14.052.068.5-024.000/-
					
		  		  	 •  Vice President Director

 
 NPWP/KITAS
	  	 :
  

:
	  	 Orias Petrus Moedak
  

09.696.491.1-412.000/-

					
		  		  	 •  Director

 
 NPWP/KITAS
	  	 :
  

:
	  	 Jenpino Ngabdi
  

07.323.435.3-014.000/-

					
		  		  	 •  Director

 
 NPWP/KITAS
	  	 :
  

:
	  	 Achmad Ardianto
  

49.053.471.6-434.000/-

					
		  		  	 •  Director

 
 NPWP/KITAS
	  	 :
  

:
	  	 Robert Charles Schroeder
  

77.214.366.5-953.000/ 2C11JD0318-S

					
		  		  	 •  Director

 
 NPWP/KITAS
	  	 :
  

:
	  	 Mark Jerome Johnson
  

-/-

					
		  		  	 •  President Commissioner

 
 NPWP/KITAS
	  	 :
  

:
	  	 Richard Carl Adkerson
  

-/-

					
		  		  	 •  Vice President Commissioner

 
 NPWP/KITAS
	  	 :
  

:
	  	 Amien Sunaryadi
  

09.245.264.8-432.000/-

  -
 6
 - 
  

									
		  		  	 •  Commissioner

 
 NPWP/KITAS
	  	 :
  

:
	  	 Budi Gunadi Sadikin
  

09.245.429.7-432.000/-

					
		  		  	 •  Commissioner

 
 NPWP/KITAS
	  	 :
  

:
	  	 Hinsa Siburian
  

25.119.011.2.412.000/-

					
		  		  	 •  Commissioner

 
 NPWP/KITAS
	  	 :
  

:
	  	 Katheen Lynne Quirk
  

-/-

					
		  		  	 •  Commissioner

 
 NPWP/KITAS
	  	 :
  

:
	  	 Adrianto Machribie
  

06.175.038.6-093.000/-

					
		  		  	 d. Business Entity’s NPWP
	  	:	  	01.069.536.9-091.000
					
		  		  	 e. Shareholding Composition
	  		  	
					
		  		  	 1.  PT Indonesia Asahan Aluminium (Persero)
	  	:	  	26.236%
					
		  		  	 2.  PT Indonesia Papua Metal dan Mineral
	  	:	  	25.000%
					
		  		  	 3.  Freeport McMoRan Inc.
	  	:	  	48.764%
					
		  		  	 f. Shareholding Composition
	  		  	
					
		  		  	 1.  Indonesian
	  	:	  	51.236%
					
		  		  	 2.  Foreign
	  	:	  	48.764%%
					
		  		  	 g. Commodities
	  	:	  	Copper and associated minerals
					
		  		  	 h. Mining Location
	  		  	
					
		  		  	 1.  Regency
	  	:	  	Mimika
					
		  		  	 2.  Province
	  	:	  	Papua
					
		  		  	 3.  Area Code
	  	:	  	99PKO074 / 1591092072018001
					
		  		  	 4.  Area
	  	:	  	9,946.12 Hectares

  

					
	SECOND	  	:	  	The Production Operation IUPK as referred to in the FIRST Dictum is granted based on an Area of the Special Mining Business License for Production Operation, hereinafter referred to as the Production Operation WIUPK, in accordance
with the Coordinates List and Map of the Production Operation WIUPK as provided under Annex I and Annex II which constitute inseparable parts of this Ministerial Decree.
			
	THIRD	  	:	  	The holder of the Production Operation IUPK is given an area to support its mining activities upon the terms:

  -
 7
 - 
  

							
		  		  		  	 a.   it is given in accordance with the Coordinates List and Map of the
supporting area of the mining business activities as provided under Annex III and Annex IV which constitute inseparable parts of this Ministerial Decree; and

				
		  		  		  	 b.  the holder of the Production Operation IUPK has priority in utilizing the
supporting area.

				
	FOURTH	  	:	  		  	 a.   the Production Operation IUPK as referred to in the FIRST Dictum is valid
until 29 December 2021 simultaneously with the first extension to its term for a period of 10 (ten) years until 29 December 2031; and

				
		  		  		  	 b.  the period of the Production Operation IUPK as referred to in letter a is granted
with the second extension for a period of 10 (ten) years until 29 December 2041 provided that the holder of the Production Operation IUPK fulfills the requirements and the obligations for the second extension as stipulated in Annex V
which constitute an inseparable part of this Ministerial Decree.

				
	FIFTH	  		  	:	  	The holder of the Production Operation IUPK may carry out production operation activities, which include construction, mining, transportation and sales, as well as processing and refining activities.
				
	SIXTH	  		  	:	  	The holder of the Production Operation IUPK has rights and obligations as stipulated in Annex VI which constitute an inseparable part of this Ministerial Decree.
				
	SEVENTH	  		  	:	  	The holder of the Production Operation IUPK is obliged to pay State revenue and regional revenue, including paying 4% (four percent) to the Government and 6% (six percent) to local governments of its net profit as stipulated in
Annex VII, which constitutes an inseparable part of this Ministerial Decree.
				
	EIGHTH	  		  	:	  	The holder of the Production Operation IUPK is obliged to carry out processing and refining of all mining products domestically in accordance with the provisions stipulated in Annex VIII, which constitute an inseparable part of this
Ministerial Decree.
				
	NINTH	  		  	:	  	The holder of the Production Operation IUPK is prohibited from:
				
		  		  		  	 a.   conducting mining activities within the supporting area;

  -
 8
 - 
  

					
		  		  	 b.  involving its subsidiary and/or affiliated party engaged in mining services
business in carrying out its mining business activities in the absence of an approval from the Director General on behalf of the Minister;

			
		  		  	 c.   encumbering the Production Operation IUPK and/or mining commodities to
other parties;

			
		  		  	 d.  conducting mining business activities in areas which are prohibited in accordance
with the provisions laws and regulations;

			
		  		  	 e.   transferring the Production Operation IUPK to another party without
approval of the Minister;

			
		  		  	 f.   conducting activities without an environmental permit and forest area usage
permit; and/or

			
		  		  	 g.  causing unpermitted environmental impacts.

			
	TENTH	  	:	  	In the event the modification referred to in the FIRST Dictum occurs, the holder of the Production Operation IUPK is obliged to follow the provisions of the laws and regulations and such modification is declared as an inseparable
part of this Ministerial Decree.
			
	ELEVENTH	  	:	  	The holder of the Production Operation IUPK may be imposed with sanctions in accordance with the provisions of the laws and regulations.
			
	TWELFTH	  	:	  	All of the permits that have been granted to the holder of the Production Operation IUPK prior to the issuance of this Minister Decree remain valid until the expiration of their periods.
			
	THIRTEENTH	  	:	  	At the time this Ministerial Decree comes into force:
			
		  		  	 a.   the Contract of Work between the Government of the Republic of Indonesia
and PT Freeport Indonesia dated 30 December 1991 as well as other agreements between the Government and PT Freeport Indonesia are declared terminated; and

			
		  		  	 b.  Decree of the Minister of Energy and Mineral Resources Number 431 K/30/MEM/2017
dated 10 February 2017 regarding Special Mining Business License for Production Operation to PT Freeport Indonesia as amended several times, the last time by Decree of the Minister of Energy and Mineral Resources Number 2022 K/30/MEM/2018 dated
30 November 2018 regarding the Ninth Amendment to the Decree of the Minister of Energy and Mineral Resources Number 431 K/30/MEM/2017 dated 10 February 2017 regarding Special Mining Business License for Production Operation to PT Freeport
Indonesia is revoked and declared no longer valid.

			
	FOURTEENTH	  	:	  	This Ministerial Decree shall come into force on the date of its stipulation.

  -
 9
 - 
  

					
		  		  	 Stipulated in Jakarta

on the date of 21 December 2018

MINISTER OF ENERGY AND MINERAL RESOURCES OF

THE REPUBLIC OF INDONESIA,

 IGNASIUS JONAN 

CC to: 
  

	1.	 Coordinating Minister of Maritime Sector 

 

	2.	 Coordinating Minister of Economic Sector 

 

	3.	 Minister of Finance 

  

	4.	 Minister of Domestic Affairs 

 

	5.	 Minister of Law and Human Rights 

 

	6.	 Minister of State Owned Enterprise 

 

	7.	 Minister of Environment and Forestry 

 

	8.	 Minister of Agriculture and Spatial / Head of National Land Board 

 

	9.	 Head of Investment Coordinating Board 

 

	10.	 Secretary General of the Ministry of Energy and Mineral Resources 

 

	11.	 Inspector General of the Ministry of Energy and Mineral Resources 

 

	12.	 Director General of Minerals and Coal 

 

	13.	 Papua Governor 

  

	14.	 Mimika Regent. 

Copy is in accordance with the original document 

MINISTRY OF ENERGY AND MINERAL RESOURCES 

HEAD OF LEGAL BUREAU 
 [signed and
stamped] 
 Hufron Asrofi, S.H., M.Hum. 

NIP 196010151981031002 

  -
 10
 - 
  

 ANNEX I 

DECREE OF THE MINISTER OF ENERGY AND MINERAL RESOURCES OF THE REPUBLIC OF INDONESIA 

NUMBER        : 2053 K/30/MEM/2018 

DATE              : 21 December 2018 

REGARDING 
 PRODUCTION OPERATION
SPECIAL MINING BUSINESS LICENSE 
 PT FREEPORT INDONESIA 

LIST OF COORDINATES 
 AREA OF
PRODUCTION OPERATION SPECIAL MINING BUSINESS LICENSE 
  

					
	COMPANY NAME	  	:	 	PT FREEPORT INDONESIA
			
	LOCATION	  		 	
			
	 •  PROVINCE
	  	:	 	PAPUA
			
	 •  REGENCY
	  	:	 	MIMIKA
			
	COMMODITY	  	:	 	COPPER AND ASSOCIATED MINERALS
			
	AREA CODE	  	:	 	99PKO074/1591092072018001
			
	TOTAL AREA	  	:	 	9,946.12 Hectares

  

															
	 NO.

POINT
	  	LONGITUDE (BT)	  	LATITUDE
	  	°	  	’	  	”	  	°	  	’	  	”	  	 North Latitude

(LU)/South
Latitude

(LS)

	1	  	137	  	  8	  	20.290	  	4	  	2	  	39.330	  	LS
	2	  	137	  	  8	  	55.930	  	4	  	2	  	39.190	  	LS
	3	  	137	  	  8	  	56.190	  	4	  	3	  	41.000	  	LS
	4	  	137	  	  9	  	25.350	  	4	  	3	  	40.860	  	LS
	5	  	137	  	  9	  	25.750	  	4	  	5	  	15.210	  	LS
	6	  	137	  	10	  	  7.870	  	4	  	5	  	15.030	  	LS
	7	  	137	  	10	  	  8.380	  	4	  	7	  	18.690	  	LS
	8	  	137	  	  4	  	44.370	  	4	  	7	  	20.020	  	LS
	9	  	137	  	  4	  	43.860	  	4	  	5	  	16.400	  	LS
	10	  	137	  	  4	  	17.940	  	4	  	5	  	16.510	  	LS
	11	  	137	  	  4	  	17.640	  	4	  	4	  	  4.900	  	LS
	12	  	137	  	  3	  	15.440	  	4	  	4	  	  5.160	  	LS
	13	  	137	  	  3	  	14.910	  	4	  	1	  	55.050	  	LS
	14	  	137	  	  8	  	20.100	  	4	  	1	  	53.760	  	LS

  -
 11
 - 
  

 MINISTER OF ENERGY AND MINERAL RESOURCES OF THE REPUBLIC OF INDONESIA, 

IGNASIUS JONAN 
 Copy is in
accordance with the original document 
 MINISTRY OF ENERGY AND MINERAL RESOURCES 

HEAD OF LEGAL BUREAU 
 [signed and
stamped] 
 Hufron Asrofi, S.H., M.Hum. 

NIP 196010151981031002 

  -
 12
 - 
  

 ANNEX II 

DECREE OF THE MINISTER OF ENERGY AND MINERAL RESOURCES OF THE REPUBLIC OF INDONESIA 

NUMBER        : 2053K/30/MEM/2018 

DATE              : 21 December 2018 

REGARDING 
 PRODUCTION OPERATION
SPECIAL MINING BUSINESS LICENSE 
 PT FREEPORT INDONESIA 

MAP OF THE AREA OF PRODUCTION OPERATION SPECIAL MINING BUSINESS LICENSE 
  

 

  -
 13
 - 
  

 ANNEX III 

DECREE OF THE MINISTER OF ENERGY AND MINERAL RESOURCES OF THE REPUBLIC OF INDONESIA 

NUMBER        : 2053K/30/MEM/2018 

DATE              : 21 December 2018 

REGARDING 
 PRODUCTION OPERATION
SPECIAL MINING BUSINESS LICENSE 
 PT FREEPORT INDONESIA 

LIST OF COORDINATES 
 SUPPORTING
AREA OF MINING BUSINESS ACTIVITIES 
  

			
	COMPANY NAME     : PT FREEPORT INDONESIA
		
	LOCATION	 	
		
	 •  PROVINCE
	 	: PAPUA
		
	 •  REGENCY
	 	: MIMIKA
		
	AREA CODE	 	: 99PKO074/1591092072018001
		
	TOTAL AREA	 	                : 116,783.75 HECTARES

  

															
	 NO.

POINT
	  	LONGITUDE	  	LATITUDE
	  	o	  	,	  	,,	  	o	  	,	  	,,	  	LU/LS
	1	  	137	  	  4	  	17.940	  	4	  	  5	  	16.510	  	LS
	2	  	137	  	  4	  	43.860	  	4	  	  5	  	16.400	  	LS
	3	  	137	  	  4	  	44.370	  	4	  	  7	  	20.020	  	LS
	4	  	137	  	  7	  	  5.410	  	4	  	  7	  	19.450	  	LS
	5	  	137	  	  7	  	  5.780	  	4	  	  9	  	31.030	  	LS
	6	  	137	  	  6	  	49.970	  	4	  	  9	  	31.100	  	LS
	7	  	137	  	  6	  	50.380	  	4	  	12	  	  3.200	  	LS
	8	  	137	  	  6	  	17.800	  	4	  	12	  	  3.270	  	LS
	9	  	137	  	  6	  	18.250	  	4	  	14	  	52.400	  	LS
	10	  	137	  	  5	  	27.470	  	4	  	14	  	52.470	  	LS
	11	  	137	  	  5	  	27.550	  	4	  	15	  	59.500	  	LS
	12	  	137	  	  2	  	  7.670	  	4	  	16	  	  0.080	  	LS
	13	  	137	  	  2	  	  8.180	  	4	  	19	  	56.590	  	LS
	14	  	136	  	59	  	18.980	  	4	  	19	  	57.040	  	LS
	15	  	136	  	59	  	19.270	  	4	  	20	  	55.520	  	LS
	16	  	136	  	57	  	51.140	  	4	  	20	  	55.870	  	LS
	17	  	136	  	57	  	53.887	  	4	  	36	  	31.441	  	LS
	18	  	136	  	59	  	35.009	  	4	  	36	  	32.007	  	LS

  -
 14
 - 
  

															
	19	  	136	  	59	  	36.480	  	4	  	42	  	15.370	  	LS
	20	  	137	  	  0	  	22.380	  	4	  	42	  	15.220	  	LS
	21	  	137	  	  0	  	22.690	  	4	  	44	  	  2.970	  	LS
	22	  	137	  	  1	  	14.600	  	4	  	44	  	  2.790	  	LS
	23	  	137	  	  1	  	15.491	  	4	  	47	  	50.817	  	LS
	24	  	137	  	  2	  	20.978	  	4	  	47	  	50.513	  	LS
	25	  	137	  	  2	  	22.480	  	4	  	55	  	56.420	  	LS
	26	  	136	  	50	  	  8.870	  	4	  	55	  	58.510	  	LS
	27	  	136	  	50	  	  6.790	  	4	  	44	  	59.970	  	LS
	28	  	136	  	51	  	  3.660	  	4	  	44	  	59.780	  	LS
	29	  	136	  	51	  	  3.300	  	4	  	42	  	45.640	  	LS
	30	  	136	  	52	  	11.890	  	4	  	42	  	45.430	  	LS
	31	  	136	  	52	  	10.990	  	4	  	38	  	11.000	  	LS
	32	  	136	  	53	  	20.190	  	4	  	38	  	10.840	  	LS
	33	  	136	  	53	  	17.850	  	4	  	23	  	  2.580	  	LS
	34	  	136	  	54	  	16.760	  	4	  	23	  	  2.420	  	LS
	35	  	136	  	54	  	16.080	  	4	  	19	  	57.640	  	LS
	36	  	136	  	56	  	12.668	  	4	  	19	  	57.346	  	LS
	37	  	136	  	56	  	12.412	  	4	  	18	  	16.834	  	LS
	38	  	136	  	57	  	54.730	  	4	  	18	  	16.920	  	LS
	39	  	136	  	57	  	54.550	  	4	  	17	  	40.520	  	LS
	40	  	136	  	58	  	51.530	  	4	  	17	  	40.500	  	LS
	41	  	136	  	58	  	51.410	  	4	  	16	  	24.880	  	LS
	42	  	137	  	  0	  	  0.000	  	4	  	16	  	24.700	  	LS
	43	  	137	  	  0	  	  0.000	  	4	  	14	  	35.260	  	LS
	44	  	137	  	  1	  	  1.540	  	4	  	14	  	35.160	  	LS
	45	  	137	  	  1	  	  1.350	  	4	  	13	  	  3.570	  	LS
	46	  	137	  	  1	  	36.300	  	4	  	13	  	  3.500	  	LS
	47	  	137	  	  1	  	34.923	  	4	  	  5	  	  0.000	  	LS
	48	  	137	  	  2	  	34.320	  	4	  	  4	  	59.910	  	LS
	49	  	137	  	  2	  	34.300	  	4	  	  4	  	53.220	  	LS
	50	  	137	  	  3	  	  0.318	  	4	  	  4	  	53.154	  	LS
	51	  	137	  	  3	  	  0.301	  	4	  	  4	  	39.664	  	LS
	52	  	137	  	  3	  	10.721	  	4	  	  4	  	39.638	  	LS
	53	  	137	  	  3	  	10.693	  	4	  	  4	  	29.967	  	LS
	54	  	137	  	  3	  	23.118	  	4	  	  4	  	29.936	  	LS
	55	  	137	  	  3	  	23.079	  	4	  	  4	  	16.131	  	LS
	56	  	137	  	  3	  	30.822	  	4	  	  4	  	16.145	  	LS

  -
 15
 - 
  

															
	 57
	  	137	  	3	  	30.794	  	4	  	4	  	5.112	  	LS
	 58
	  	137	  	4	  	17.652	  	4	  	4	  	4.921	  	LS

 MINISTER OF ENERGY AND MINERAL RESOURCES OF 

THE REPUBLIC OF INDONESIA, 

IGNASIUS JONAN 
 Copy is in
accordance with the original document 
 MINISTRY OF ENERGY AND MINERAL RESOURCES 

HEAD OF LEGAL BUREAU 
 [signed and
stamped] 
 Hufron Asrofi, S.H., M.Hum. 

NIP 196010151981031002 

  -
 16
 - 
  

 ANNEX IV 

DECREE OF THE MINISTER OF ENERGY AND MINERAL RESOURCES OF THE REPUBLIC OF INDONESIA 

NUMBER        : 2053 K/30/MEM/2018 

DATE              : 21 December 2018 

REGARDING 
 PRODUCTION OPERATION
SPECIAL MINING BUSINESS LICENSE 
 PT FREEPORT INDONESIA 

MAP OF THE MINING BUSINESS SUPPORTING AREA 
  

 

  -
 17
 - 
  

 ANNEX V 

DECREE OF THE MINISTER OF ENERGY AND MINERAL RESOURCES OF THE REPUBLIC OF INDONESIA 

NUMBER        : 2053K/30/MEM/2018 

DATE              : 21 December 2018 

REGARDING 
 PRODUCTION OPERATION
SPECIAL MINING BUSINESS LICENSE 
 PT FREEPORT INDONESIA 

REQUIREMENTS AND OBLIGATIONS OF SECOND EXTENSION 

OF THE PRODUCTION OPERATION IUPK 
  

	A.	 REQUIREMENTS AND OBLIGATIONS TO OBTAIN THE PRODUCTION OPERATION IUPK SECOND EXTENSION 

The Production Operation IUPK is granted with a second extension for 10 (ten) years until 29 December 2041 as long as the holder of
Production Operation IUPK fulfills: 
  

	 	1.	 administrative requirements: 

 

	 	a.	 application letter signed on stamp duty by board of directors of the Business Entity; 

 

	 	b.	 composition of board of directors and board of commissioners attached with identity and the Taxpayer
Identification Number; 

  

	 	c.	 list of individual shareholders up to last beneficiaries (beneficial ownership) along with Taxpayer
Identification Number of the shareholders; 

  

	 	d.	 copy of domicile letter; 

 

	 	e.	 Applicant’s official contact data: 

 

	 	1)	 phone number; 

  

	 	2)	 cellular-phone number; and 

 

	 	3)	 e-mail address; 

 

	 	f.	 copies of all completed documents in digital format. 

 

	 	2.	 technical requirements: 

 

	 	a.	 map of the Production Operation WIUPK completed with area boundary coordinates; 

 

	 	b.	 balance of resources and reserves; and 

 

	 	c.	 final report on the production operation activities. 

 

	 	3.	 environmental requirements: 

 

	 	a.	 Final report on implementation of the environmental management; 

 

	 	b.	 Final report on implementation of the reclamation 

 

	 	c.	 Copy of receipt of deposit for reclamation guarantee in accordance with the procedure of deposit for
reclamation guarantee as referred to in Decree of 

  -
 18
 - 
  

	 	
the Minister of Energy and Mineral Resources Number 1827 K/30/MEM/2018 dated 7 May 2018 regarding Guidance on Implementation of Good Mining Engineering Rules; 

 

	 	d.	 Copy of receipt of deposit for post-mining guarantee in accordance with the procedure of deposit for
post-mining guarantee as referred to in Decree of the Minister of Energy and Mineral Resources Number 1827K/30/MEM/2018 dated 7 May 2018 regarding Guidance of Implementation of Good Mining Engineering Rules; 

 

	 	e.	 Statement letter with stamp duty to comply with provisions of the laws and regulations on environmental
protection and management; and 

  

	 	f.	 Copy of the borrow to use permit of forest area for forest areas which has been issued by the authorized
institution at the time this Ministerial Decree comes into force. 

  

	 	4.	 financial requirements: 

 

	 	a.	 latest year of the financial statements audited by public accountant; 

 

	 	b.	 evidence of submission of the Tax Return (SPT) of the Corporate Income Tax for the last 2 (two) fiscal years;
and 

  

	 	c.	 evidence of the deadrent and royalty payments in the last 3 (three) years. 

In addition to meeting the administrative, technical, environmental and financial requirements, the holder of Production Operation IUPK is
obliged to carry out the obligations as referred to in this Ministerial Decree, and has completed: 
  

	 	1.	 the construction of new refining facilities in accordance with the provisions stipulated in Annex VIII of this
Ministerial Decree; and 

  

	 	2.	 settlement of payments of state and regional revenues in accordance with the provisions stipulated in Annex VII
of this Ministerial Decree other than matters that are still being disputed in good faith. 

  

	B.	 EVALUATION OF APPLICATION OF THE PRODUCTION OPERATION IUPK SECOND EXTENSION 

 

	 	1.	 Application letter for extension by the holder of Production Operation IUPK is submitted to the Minister
through the Director General at the earliest 5 (five) years (29 December 2026) and at the latest 1 (one) year (29 December 2030) before the expiry of the Production Operation IUPK; 

 

	 	2.	 Approval for the extension is granted in the form of a letter from the Minister of Energy and Mineral Resources
at the latest 14 (fourteen) working days after the application for extension is received in accordance with the requirements as contemplated under letter A; 

  -
 19
 - 
  

	 	3.	 If after 14 (fourteen) working days as contemplated under number 2 the Minister does not issue the approval
letter or provide a response to the application, the Minister is deemed to have granted the approval for the second extension of the Production Operation IUPK; 

 

	 	4.	 If the Minister issues a response letter to the application, the holder of the Production Operation IUPK is
obliged to revise its application and/or submit a response within no later than 14 (fourteen) working days after receipt of the Minister’s response letter; and 

 

	 	5.	 The Minister issues an approval of the application at the latest within 14 (fourteen) working days after
receipt of the revised application and/or response as contemplated under number 4. 

 MINISTER OF ENERGY AND MINERAL
RESOURCES 
 THE REPUBLIC OF INDONESIA, 

Copy is in accordance with the original document 

MINISTRY OF ENERGY AND MINERAL RESOURCES 

HEAD OF LEGAL BUREAU 
 [signed and
stamped] 
 Hufron Asrofi, S.H., M.Hum. 

NIP 196010151981031002 

  -
 20
 - 
  

 ANNEX VI 

DECREE OF THE MINISTER OF ENERGY AND MINERAL RESOURCES OF THE REPUBLIC OF INDONESIA 

NUMBER        : 2053K/30/MEM/2018 

DATE              : 21 December 2018 

REGARDING 
 PRODUCTION OPERATION
SPECIAL MINING BUSINESS LICENSE 
 PT FREEPORT INDONESIA 

RIGHTS AND OBLIGATIONS 
  

	A.	 RIGHTS 

  

	 	1.	 To conduct mining business activities at the Production Operation WIUPK; 

 

	 	2.	 To entirely or partially conduct the production operation business activities which include the activities of
construction, mining, transportation and sales, as well as processing and refining; 

  

	 	3.	 To own the minerals including associated minerals, which are produced, after paying the royalty, except for
radioactive minerals; 

  

	 	4.	 To sell minerals including sales to overseas, after fulfilling domestic demand, except in the form of
concentrates after the new refining facility is in operation, with reference to customary business practice and generally applicable price in the international market; 

 

	 	5.	 To enter the Production Operation WIUPK and the supporting area in accordance with the map and list of
coordinates; 

  

	 	6.	 To grant approval, to limit, or to refuse other parties to enter into the Production Operation WIUPK;

  

	 	7.	 To submit application for temporary suspension of mining business activities in accordance with the provisions
of the laws and regulations; 

  

	 	8.	 To obtain rights over land in accordance with the provisions of the laws and regulations;

  

	 	9.	 To build and utilize facilities and infrastructures to support the production operation activities, whether in
the Production Operation WIUPK or in the supporting area in accordance with the provisions of the laws and regulations; 

  

	 	10.	 To obtain priority to exploit other commodities found within the Production Operation WIUPK in accordance with
the provisions of the laws and regulations; 

  

	 	11.	 To submit a statement that it is not interested in exploiting other commodities found within the Production
Operation WIUPK in accordance with the provisions of the laws and regulations; 

  -
 21
 - 
  

	 	12.	 To take and use woods, soil, and rocks, including to utilize rivers and other water bodies located within the
Production Operation WIUPK and the supporting area to support the production operation activities in accordance with the provisions of the laws and regulations. 

 

	 	13.	 To utilize public facilities and infrastructures for the purpose of the Production Operation IUPK activities in
accordance with the provisions of the laws and regulations; 

  

	 	14.	 To conduct cooperation in the framework of using any facility owned by another business entity, whether
affiliated or non-affiliated with the holder of the Production Operation IUPK in accordance with the provisions of the laws and regulations; 

 

	 	15.	 To engage mining services companies by taking into account operational necessity pursuant to the approval under
the Annual Work and Budget Plan in accordance with the provisions of the laws and regulations; 

  

	 	16.	 To engage foreign workers in accordance with the approval from the institution administering employment matters
in accordance with the provisions of the laws and regulations; 

  

	 	17.	 To make any amendment to investment and funding sources including amendment to paid up and issued capital in
accordance with the approval under the Annual Work and Budget Plan; 

  

	 	18.	 To make changes to the shares, as well as to the board of directors and/or board of commissioners in accordance
with the provisions of the laws and regulations; 

  

	 	19.	 To conduct and/or continue the production operation activities within the Production Operation WIUPK and the
supporting activities in the supporting area which are designated as forestry areas in accordance with Presidential Decree Number 41 Year 2004 dated 12 May 2004 concerning License or Agreement in the Field of Mining located in Forest Area after
obtaining permits in the field of forestry; 

  

	 	20.	 To grant approval, limit or refuse other parties to use any facility as well as infrastructure built by the
holder of the Production Operation IUPK such as jetty, port, installation, runway, or road, with observance to public interest; 

  

	 	21.	 To submit an application for the relinquishment of a part of, or the return of the entire, Production Operation
WIUPK and/or reduction of the supporting area in accordance with the provisions of the laws and regulations; 

  

	 	22.	 To construct storage/deposition area for liquid fuel in accordance with the approval under the Annual Work and
Budget Plan; 

  

	 	23.	 To construct facilities for transportation, storage/piling, and purchase or utilization of explosives in
accordance with the approval under the Annual Work Plan and Budget; 

  -
 22
 - 
  

	 	24.	 To conduct sleep blasting in accordance with the approval under the Annual Work and Budget Plan;

  

	 	25.	 To submit the plan for feasibility testing of equipment utilization, and/or feasibility testing of installation
utilization in accordance with the approval under the Annual Work and Budget Plan; 

  

	 	26.	 To settle disputes arising from the implementation of this mining production operation amicably, and if
necessary, settlement through district court or domestic arbitration in accordance with Law Number 4 of 2009 on Mineral and Coal Mining; 

  

	 	27.	 In the event of a dispute or an issue arising in relation to this Ministerial Decree that affects the
investment, the foreign shareholder may settle it amicably, and in the event a consensus is not achieved, the dispute will be settled through an international arbitration in accordance with Law Number 25 Year 2007 concerning Investment and may be
conducted independently from the dispute settlement as referred to in number 26; 

  

	 	28.	 To not be imposed with additional obligation to conduct shares divestment to Indonesian Participant;

  

	 	29.	 To conduct bookkeeping in English and US Dollar currency for Fiscal Years 2018 and 2019 in accordance with
the provisions of the laws and regulations in the field of taxation; 

  

	 	30.	 To conduct bookkeeping in Indonesian language and Rupiah currency starting from Fiscal Year 2020 until the
expiration of the Production Operation IUPK, unless the holder has submitted a written notification to the Director General of Tax to conduct bookkeeping in English and US Dollar currency in accordance with the provisions of the laws and
regulations in the field of taxation at the time this Ministerial Decree comes into force; 

  

	 	31.	 To market, offer, sell minerals and/or receive payments in the currency as chosen by the holder of the
Production Operation IUPK; 

  

	 	32.	 To transfer overseas and receive domestic transfers in any currency for the purpose of the production operation
activities in accordance with the provisions of the laws and regulations; and 

  

	 	33.	 All rights under this Ministerial Decree will remain valid and will not be changed during the period of this
Ministerial Decree, except for the rights which are stated in this Ministerial Decree as subject to the provisions of the laws and regulations. 

  

	B.	 OBLIGATIONS 

  

	 	1.	 To implement good mining practices; 

  -
 23
 - 
  

	 	2.	 To compose a plan and to implement reclamation and/or a post-mining in accordance with the reclamation plan
and/or post-mining plan which has been approved, as well as to deposit reclamation guarantee and/or post-mining guarantee in accordance with the provisions of the laws and regulations concerning reclamation and post-mining; 

 

	 	3.	 To appoint Head of Technical Mining occupying the highest position in the organizational structure of the
company holding the Production Operation IUPK in the mining business activities area who is responsible for the implementation of and compliance with the provisions of the laws and regulations in the field of mining safety as ratified by the Chief
Mining Inspector; 

  

	 	4.	 To compose and submit Work and Budget Plan to the Minister to obtain approval; 

 

	 	5.	 To compose and submit report on the implementation of mining business activities in accordance with the
provisions of the laws and regulations; 

  

	 	6.	 To pay local community partnership funds for the implementation of community development and empowerment, and
to report such implementation of partnership fund to the Government; 

  

	 	7.	 To compose, implement, and submit implementation report on the community development and empowerment program in
accordance with the provisions of the laws and regulations; 

  

	 	8.	 To move anything that it owns, except for any objects/buildings for public use, after the expiration of the
Production Operation IUPK in accordance with the provisions of the laws and regulations; 

  

	 	9.	 To provide data and information required by the Government and/or Local Government, and to allow the Government
and/or Local Government to enter the Production Operation WIUPK at any time to perform its duties and authorities, with notification to the Holder of the Production Operation IUPK; 

 

	 	10.	 To prioritize the use of local manpower by taking into account operational necessity and required competencies,
and domestic goods and services by taking into account quality standard, supply/service continuation, delivery/ performance time, and competitive price; 

  

	 	11.	 To compose a roadmap and implement transfer of knowledge and technology in the implementation of production
operation activities; 

  

	 	12.	 To prioritize local and/or national mining services companies in accordance with the provisions of the laws and
regulations effective on the date this Ministerial Decree is enacted; 

  

	 	13.	 To involve local entrepreneurs located around Production Operation WIUPK in conducting production operation
activities by taking into account operational necessity and the local entrepreneur ability in accordance with the provisions of the laws and regulations; 

  -
 24
 - 
  

	 	14.	 To install boundary markings of the Production Operation WIUPK in accordance with the provisions of the laws
and regulations; 

  

	 	15.	 To determine requirements for other parties who will conduct activities within the supporting area which may
affect the production operation activities; 

  

	 	16.	 To submit all data obtained from the Production Operation IUPK activities to the Minister c.q. the Director
General in accordance with the provisions of the laws and regulations; 

  

	 	17.	 To implement provisions of the mineral reference price in trading activities of the products;

  

	 	18.	 To notify long-term sale contracts to the Minister c.q. Director General of Mineral and Coal;

  

	 	19.	 To submit Investment Activities Report (LKPM) periodically in accordance with the provisions of the laws and
regulations; 

  

	 	20.	 To provide guidance to mining services companies in implementing good mining practices; 

 

	 	21.	 To apply the principles of propriety, transparency, and fairness in utilizing mining service companies holding
Mining Services Business License; 

  

	 	22.	 To prioritize domestic mineral demand with reference to customary business practice and international market
price and to comply with production and sales control; 

  

	 	23.	 To implement the improvement of mineral added value on all of the Mining products domestically in accordance
with this Ministerial Decree; 

  

	 	24.	 To comply with the technical provisions of mining operation; 

 

	 	25.	 To apply mining employment competency standards; 

 

	 	26.	 To administer every implementation of the mining business activities; 

 

	 	27.	 To settle land rights with the rights holder in accordance with the provisions of the laws and regulations for
land in relation to which rights dispute have not been settled; 

  

	 	28.	 To conduct settlement of rights in relation to supporting facilities and infrastructures in accordance with the
provisions of the laws and regulations if there are any supporting facilities and infrastructures within WIUP or WIUPK which are going to be used; 

  

	 	29.	 To store within the country, documents related to the implementation of the production operation activities;

  

	 	30.	 To develop mining production operation supporting facilities in form of facilities and infrastructures, if
required, including special facilities in accordance with the characteristics of the mining operation area in a remote location and difficult environment provided that it must be reported to the Minister; 

 

	 	31.	 Shall not be imposed with the obligation to relinquish a part or to return the whole Production Operation WIUPK
and/or reduce the supporting area; 

  

	 	32.	 Fulfill obligations in the field of environmental and forestry as follows: 

  -
 25
 - 
  

	 	a.	 to complete an Environmental Evaluation Document for production operation activities that have not been covered
in AMDAL 300K; 

  

	 	b.	 to conduct best practice available for environment management in conducting production operation;

  

	 	c.	 to manage tailings by prioritizing utilization in accordance with the roadmap approved by the minister
administering government affairs in the field of environment and forestry; 

  

	 	d.	 to comply with environmental standard and the standard criteria of ecosystem damage and the quality standard
for river water in accordance with the provisions of the laws and regulations, except regarding the quality standard and site specific criteria as referred in letter C ; 

 

	 	e.	 to conduct recovery of environmental function if there is any environmental pollution and damage due to mining
activities that was conducted by the holder of the Production Operation IUPK without suspending tihsproduction operation activities; 

  

	 	f.	 to submit written report periodically on the obligations stated in the environmental document and/or
environmental permit, such as, management of liquid waste, tailing management, hazardous and toxic material waste management, emission control, and soil damage; and 

 

	 	g.	 to complete the obligation of borrow to use permit over the forest area on Production Operation WIUPK and
supporting area that have been stipulated as protected forests at the time this Ministerial decree comes into force in accordance with provision of the laws and regulations and pay the obligations of non-tax
state revenue on borrow to use permit in accordance with the provisions of Annex VII of this Ministerial Decree. 

  

	 	33.	 All obligations under this Ministerial Decree shall remain valid and will not be changed during the term of
this Ministerial Decree, except for the obligations stated in this Ministerial Decree which are subject to provisions of the laws and regulations; and 

  

	 	34.	 For other obligations which are not stipulated under this Ministerial Decree, the provisions of the laws and
regulations on the date this Ministerial Decree comes into force will be applied. 

 MINISTER OF ENERGY AND MINERAL
RESOURCES 
 THE REPUBLIC OF INDONESIA, 

IGNASIUS JONAN 
 Copy is in
accordance with the original document 
 MINISTRY OF ENERGY AND MINERAL RESOURCES 

  -
 26
 - 
  

 HEAD OF LEGAL BUREAU 

[signed and stamped] 
 Hufron
Asrofi, S.H., M.Hum. 
 NIP 196010151981031002 

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 ANNEX VII 

DECREE OF THE MINISTER OF ENERGY AND MINERAL RESOURCES OF THE REPUBLIC OF INDONESIA 

NUMBER : 2053K/30/MEM/2018 

DATE : 21 December 2018 

REGARDING 
 PRODUCTION OPERATION
SPECIAL MINING BUSINESS LICENSE 
 PT FREEPORT INDONESIA 

OBLIGATION TO PAY STATE REVENUE AND REGIONAL REVENUE 

The holder of Production Operation IUPK has the obligation to pay the state revenues and the regional revenues during the period of the Production Operation
IUPK as referred to in the FOURTH Dictum of this Ministerial Decree with the following provisions: 
  

	1.	 Tax 

  

	 	a.	 Fulfill obligations for Corporate Income Tax with the following provisions: 

 

	 	1)	 tariffs and calculation method for the 2018 Tax Year are calculated and implemented in accordance with the
tariffs and calculation method for the 2017 Tax Year; 

  

	 	2)	 commencing in the 2019 Tax Year are calculated using the Corporate Income Tax tariff of 25% (twenty five
percent), and the calculation method of the net income, the compensation of loss, and the taxable income are in accordance with Government Regulation Number 37 of 2018 concerning Taxation Treatment and/or Non Tax State Revenues in the Mineral Mining
Business Sector, as follows: 

  

	 	a)	 tax object and calculation of income: 

 

	 	(1)	 the tax object is the income received or obtained by the Taxpayers in the Mining Business sector with regard
to: 

  

	 	(a)	 income from business; and 

 

	 	(b)	 income from outside of the business, 

in whatever name and form. 
  

	 	(2)	 income from the business as referred to in number (1) letter (a) is the income that is received or
obtained from the sales/transfer of production; 

  

	 	(3)	 calculation of the income from the business as referred to in point 2 is calculated with the following
provisions: 

  

	 	(a)	 calculated using the market price of metal mineral based on a price quote referring to the publication of metal
mineral prices at the time of the transaction; or 

  

	 	(b)	 calculated based on the actual price received or obtained by the Taxpayer if there is no market price of the
metal mineral as referred to in letter (a). 

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	 	(4)	 in the event if, in the same quotation period, there is a difference in the quotation of the metal mineral
market price with the actual price received or obtained, the income from the business as referred to in number (2) is calculated using the actual price received or obtained with the following provisions: 

 

	 	(a)	 the actual price received or obtained is lower than the quotation of the market price by a difference of not
more than 3% (three percent) of the metal mineral market price quotation; or 

  

	 	(b)	 the actual price received or obtained by the seller is higher than the metal mineral market price quotation.

  

	 	(5)	 if, in the same quotation period, the actual price received or obtained is lower than the metal mineral market
price quotation by a difference of more than 3% (three percent) of the metal mineral market price quotation, then the income from the business as referred to in number (2) is calculated by using the metal mineral market price quotation;

  

	 	(6)	 calculation of non-business income other than metal mineral sales as
referred to in number (3), number (4), and number (5) and non-business income as referred to in number (1) letter (b), is implemented in accordance with the provisions of the Laws and regulations in
the sector of Income Tax. 

  

	 	b)	 Calculation of taxable income: 

 

	 	(1)	 the amount of taxable income for Taxpayers is determined based on the gross income that is the tax object, as
referred to in letter a), and deducting the cost to obtain, claim, and maintain the income in accordance with the provisions of the laws and regulations in the sector of Income Tax effective at the time this Minister Decree is stipulated;

  

	 	(2)	 the costs to obtain, claim and maintain the income, as referred to in number (1), include:

  

	 	(a)	 cost of general investigation activity; 

 

	 	(b)	 cost of exploration activity; 

 

	 	(c)	 cost of feasibility study activity; 

 

	 	(d)	 cost of production operation activity; 

 

	 	(e)	 post mining activity costs; 

 

	 	(f)	 depreciation and/or amortization on the expenditures to acquire tangible and/or intangible assets that are
owned and used in order to obtain, claim, and maintain income and amortization on the expenditures to acquire rights and on other costs that have the benefit term of more than 1 (one) year in accordance with the provisions of the laws and
regulations in the field of Income Tax effective at the date this Ministerial Decree is stipulated; 

  

	 	(g)	 reimbursement or reward related to the work or service rendered in the form of in kind and enjoyment in
accordance with the provisions of laws and regulations in 

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the sector of Income Tax effective at the time this Ministerial Decree is stipulated; 

  

	 	(h)	 costs that are incurred in the framework of Non-Tax State Revenue
obligations in accordance with the provisions of the laws and regulations in the sector of Non-Tax State Revenue; 

  

	 	(i)	 reserve of the reclamation costs in accordance with the provisions of the laws and regulations in the field of
Income Tax effective at the date of this Ministerial Decree; 

  

	 	(j)	 interest; 

  

	 	(k)	 donation in the framework of the national disaster management, which is a donation for the national disaster
victims that is submitted through the disaster management agency or institution/party that has obtained the permit from the authorized agency/institution; 

  

	 	(l)	 donation in the framework of research and development, which is a donation for research and development that is
carried out in the area of the Republic of Indonesia, which is submitted through the research and development institution; 

  

	 	(m)	 donation for education facilities in the form of education facilities that is submitted through [an][the]
institution; 

  

	 	(n)	 donation for sports development, in the form of donation for the development and coordination of an
organization or association of organizations of sport types/branches , which is submitted through a sport development institution; and 

  

	 	(o)	 costs of construction of social infrastructures, being costs incurred for the provision of public interest
infrastructure including in the health sectors and that are non-profit in nature through institutions engaged in community empowerment and development. 

 

	 	(3)	 The institution that receives the submission of donation and/or costs, as referred to in number (2) letter
(l), letter (m), letter (n), and/or letter (o), should involve the Government and/or Local Government, in accordance with laws and regulation in the sector of taxation effective at the time this Ministerial Decree is stipulated;

  

	 	(4)	 provisions on the requirements of the amount of the donation value and/or costs that can be deducted, recording
and reporting of donations and/or costs, as referred to in number (2) and number (3), which can be deducted from the gross income in accordance with the provisions of the laws and regulations concerning donation for the national disaster
management, donations for research and development, donations for education facilities, donations for sport development, and costs for the development of social infrastructures that can be deducted from gross income; 

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	 	(5)	 the expenditures or costs that may not be deducted in determining the amount of taxable income for Taxpayers in
accordance with the provisions of the laws and regulation in the sector of Income Tax at the date this Ministerial Decree is stipulated; 

  

	 	(6)	 on the amount of fees as referred to in number (2) that may be deducted as referred to in number
(1) and expenses and/or costs that cannot be deducted as referred to in number (5), to determine the amount of taxable income, an examination can be conducted for taxation interests in accordance with the provisions of the laws and regulations
in the Income Tax sector effective at the time this Ministerial Decree is stipulated. 

  

	 	c)	 calculation of the depreciation and amortization as well as recognition of the remaining book value of tangible
and intangible assets: 

  

	 	(1)	 in the event the tax payer carries out the processing and/or refinery facilities development activities, the
expenditures for the development, construction and operation of the processing and/or refinery facilities that have the benefit term of more than 1 (one) year are capitalized and depreciated in accordance with the laws and regulations in the Income
Tax sector effective at the time this Ministerial Decree is stipulated; 

  

	 	(2)	 in the event the Tax Payer carries out the activities of stripping/overburden removal, the expenditures for
such activities that are carried out prior to the Production Operation period, are capitalized and amortized; 

  

	 	(3)	 the amortization, as referred to in number (2), is carried out from the month the Production Operation
activities are approved by the Minister, which calculation is carried out during the period of the Production Operation IUPK and is calculated proportionately or by using the unit of production method; 

 

	 	(4)	 in the event the Taxpayer conducts the activities of stripping/over burden removal and/or opening of
underground mine during the Production Operation period including in the framework of searching for new reserves, the expenditures for activities of stripping/over burden removal and/or opening of underground mine are charged as costs at the time
such expenditures occur; 

  

	 	(5)	 in the event the Taxpayer who carries out the activities of stripping/overburden removal and/or opening of
underground mine: 

  

	 	(a)	 has more than one mining enterprise license; and 

 

	 	(b)	 implements the activity phase prior to the Production Operation and the Production Operation activity phase is
included in the framework of searching new reserves, 

 the expenditures for the activity phase prior to the Production
Operation are capitalized and amortized in accordance with the provisions as meant in number (3) and the expenditures for the Production Operation activity phase, including in the framework of searching for new reserves, are charged as costs at
the time the expenditures occur, as meant in number (4); 

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	 	(6)	 the expenditures to obtain tangible assets and/or intangible assets that are still owned by the holder of
Production Operation IUPK, and that are used to obtain, claim, and maintain the income that has a benefit term of more than 1 (one) year prior to the issuance of the Production Operation IUPK, and has been depreciated in accordance with the
provisions in the contract of work, continue to be depreciated and/or amortized in accordance with the provisions in the contract of work in the tax year of the issuance of the Production Operation IUPK; 

 

	 	(7)	 the expenditures to obtain tangible assets and/or intangible assets, that are owned by the IUPK Production
Operation holder, and are used to obtain, claim and maintain the income that has the benefit term of more than 1 (one) year after the issuance of the IUPK Production Operation, are depreciated and/or amortized in accordance with the provisions of
the laws and regulations in the sector of Income Tax, effective at the time this Minister Decree is stipulated; 

  

	 	(8)	 in the event the expenditures in order to obtain tangible assets, except buildings and/or intangible assets
that are owned by the holder of Production Operation IUPK, and used to obtain, claim, and maintain the income prior to the issuance of the Production Operation IUPK, still have the useful asset life in the following year after the issuance of the
Production Operation IUPK, then such remaining asset’s net book value is depreciated and/or amortized in accordance with the provisions of the laws and regulations in the field of Income Tax, effective at the time this Minister Decree is
stipulated by taking account of the remaining benefit term. 

  

	 	(9)	 the depreciation and/or amortization, as referred to in number (8), are carried out based on the remaining book
value of the relevant assets at the beginning of the tax year after the issuance of the Production Operation IUPK; 

  

	 	(10)	 in the event the remaining asset useful life, as referred to in number (8), expires in the year following the
issuance of the Production Operation IUPK, then such asset’s remaining net book value is depreciated and/or amortized in the following tax year after issuance of the Production Operation IUPK; 

 

	 	(11)	 the depreciation on assets in the form of buildings that are still owned at the beginning of the year after
issuance of the Production Operation IUPK, and used in order to obtain, claim and maintain income, is carried out in the same way as depreciation that has been carried out in the tax year prior to the tax year of issuance of the Production Operation
IUPK; 

  

	 	(12)	 in the event the Production Operation license term expires earlier than the term determined in the Production
Operation license, then the remaining book value of the tangible assets and/or intangible assets may be depreciated and/or amortized all at once. 

  

	 	d)	 for the purpose of the Income Tax calculation, the determination of the amount of comparison between the debt
and capital as well as the loan cost that can be taken into account in calculating the taxable income for taxpayers in the mining business sector, is carried out in 

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accordance with the provisions of the laws and regulations in the sector of Income Tax effective at the time this Ministerial Decree is stipulated. 

 

	 	3)	 provisions other than tariffs and procedures for calculating net income, loss compensation, and taxable income,
as referred to in number (2), are carried out in accordance with the provisions of the laws and regulations in the sector of Income Tax. 

  

	 	b.	 Fulfill obligations of the Income Tax deduction and collection in accordance with the provisions of the laws
and regulations in the Income Tax sector prevailing from time to time; 

  

	 	c.	 Fulfill obligations of the Value Added Tax and/or Sales Tax on Luxurious Goods in accordance with the
provisions of the laws and regulations in the field of Value Added Tax and/or Sales Tax on Luxurious Goods prevailing from time to time. 

  

	 	d.	 Fulfill obligations of the Stamp Duty in accordance with the provisions of the laws and regulation in the field
of the Stamp Duty prevailing from time to time; 

  

	 	e.	 Fulfill obligations of the Land and Building Tax (PBB) in accordance the laws and regulations in the field of
the Land and Building Tax effective at the time of this Ministerial Decree stipulated under the following terms: 

  

	 	1)	 tariff and calculation procedures for the 2018 tax year are calculated and carried out in accordance with the
tariff and calculation procedures for the 2017 tax year; 

  

	 	2)	 commencing in Tax Year 2019 until the end of the Tax Year of Production Operation IUPK is calculated in
accordance with the following provisions: 

  

	 	a)	 The tariff of Land and Building Tax (PBB) is determined to be 0.5% (zero point five percent), in accordance
with Law Number 12 of 1985 concerning Land and Building Tax as amended by Law Number 12 of 1994 concerning Amendment to Law Number 12 of 1985 concerning Land and Building Tax; 

 

	 	b)	 The Taxable Sales Value is determined amounting to 40%, as regulated in Government Regulation Number 25 of 2002
concerning Determination of the Amount of the Taxable Sales Value for the Calculation of Land and Building Tax; 

  

	 	c)	 The Capitalization Figures is determined amounting to 8.20 (eight point twenty), as determined in the Decree of
the Director General of Taxation Number KEP-28/PJ/2018 concerning Determination of Land Value per Square Meter for Offshore Land Surface, Land Value per Square Meter for the Exploration Land Body,
Capitalization Figures, Steam Price, and Electricity Price, for the Determination of the Amount of the Land and Building Tax Object Sales Value in the Mining Sector for the 2018 Tax Year; 

 

	 	d)	 The amount of payable Land and Building Tax (PBB), calculated as regulated in the Regulation of the Director
General of Taxation Number PER-47/PJ/2015 concerning System of Imposing Land and Building Tax in the Mining Sector for Mineral and Coal Mining, as follows: 

 

	 	(1)	 For land body: 

PBB tariff of 0.5% x NJKP 40% x [((result of mined production in one year prior to the Tax Year x sales price of mine excavation

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result) – mine excavation production cost) x Capitalization Figures of 8.20]. 

The mine excavation production costs is in the form of direct cost for: 

 

	 	(a)	 stripping/overburden removal; 

 

	 	(b)	 taking of mine excavation production result; 

 

	 	(c)	 processing and/or refinery of mine excavation production result; and/or 

 

	 	(d)	 transportation of mine excavation production result. 

 

	 	(2)	 For land surface: 

PBB tariff of 0.5% x NJKP 40% x (total Tax Object Area extent x Land Tax Object Sales Value per square meter). 

 

	 	(3)	 For building: 

PBB tariff of 0.5% x NJKP 40% x (total Building extent x Building Tax Object Sales Value per square meter). 

Total Land and Building Tax (PBB) that should be paid in each Tax Year based on the above mentioned calculation is not less than
US$65,000,000.00 (sixty five million United States Dollar). In the event the result of the above PBB calculation is more than US$65,000,000.00 (sixty five million United States Dollar), the holder of Production Operation IUPK is provided a reduction
so that the Land and Building Tax (PBB) that should be paid becomes US$65,000,000.00 (sixty five million United States Dollar). 
  

	2.	 Customs and Excise: 

  

	 	a.	 Import Duty: 

Fulfill obligations of the import duty and the tax in the framework of import in accordance with the provisions of the laws and regulations
prevailing from time to time. 
  

	 	b.	 Export Duty: 

Fulfill obligations of the export duty in accordance with the provisions of laws and regulations in the field of excise, including the
Regulation of the Minister of Finance Number 164/PMK.010/2018 on the Determination of Export Goods which is subject to Export Duty and Export Duty Tariff. 
  

	 	c.	 Excise: 

Fulfill obligations of the excise in accordance with the provisions of the laws and regulations in the field of the excise prevailing from time
to time. 
  

	3.	 Non-Tax State Revenue 

 

	 	a.	 Deadrent 

  

	 	1)	 fulfill obligations of the dead-rent amounting to US$4.00 (four United States Dollars) per hectare per year for
the IUPK Area in accordance with the Government Regulation Number 9 of 2012 concerning Types and Tariffs on Types of Non-Tax State Revenues Applicable at the Ministry of Energy and

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Mineral Resources, which applies until expiration of the Production Operation IUPK; and 

  

	 	2)	 provisions concerning the procedures for imposition, collection and payment/deposit of Non-Tax State Revenues for the holder of Production Operation IUPK on the rights and obligations of Non-Tax State Revenues from the Deadrent are conducted in accordance with
the provisions of laws and regulations effective at the time this Ministerial Decree is stipulated. 

  

	 	b.	 Royalty 

  

	 	1)	 fulfill obligations of the royalties with tariffs for commodities: 

 

	 	a)	 gold per kg 3.75% (three point seventy five percent) of the sales price; 

 

	 	b)	 silver per kg 3.25% (three point twenty five percent) of the sales price; and 

 

	 	c)	 copper per ton 4.00% (four percent) of the sales price, in accordance with Government Regulation Number 9 of
2012 concerning Types and Tariffs on the Types of Non-Tax State Revenues Applicable at the Ministry of Energy and Mineral Resources; 

 

	 	2)	 the sales prices, as referred to in number 1), are the sales prices that are determined based on the provisions
of the laws and regulations effective at the date of this Ministerial Decree; 

  

	 	3)	 in addition to the commodity, as contained in number 1), the royalty tariff is imposed in accordance with the
provisions of the laws and regulations effective at the date of this Ministerial Decree; 

  

	 	4)	 the provisions concerning procedures on imposition, collection and payment / deposit of non-tax state revenues for the holder of IUPK Production Operation on the rights and obligations of non-tax state revenues from Royalty, are carried out in accordance with the
laws and regulations effective at the date of this Ministerial Decree; 

  

	 	5)	 In calculating royalty payable, the cost of TC/RC used is the actual cost paid or payable, including the cost
of TC/RC charged by the New Refinery Facility as obliged by this Ministerial Decree; 

  

	 	6)	 in the event the new refining facility which is integrated with the Production Operation IUPK has been in
operation, the holder of the Production Operation IUPK may deduct the costs related with the new refining facilities (cost of TC/RC) in the calculation of royalty; and 

 

	 	7)	 the provisions of number 1) to number 5) above also applicable in the event that the holder of Production
Operation IUPK carries out obligations of processing and/or refining integrated with its production operations activities. 

  

	 	c.	 The Non-Tax State Revenues in the field of forestry and environment

  

	 	1)	 usage of forestry area 

Fulfill obligations of the Non-Tax State Revenue on the forest area usage for development outside the
forestry activities in accordance with the Government Regulation Number 33 of 2014 concerning Types and Tariffs on the Types of Non-Tax State Revenues Originating from the Forest Area Usage for Development
Outside the Forestry Activities Applicable at the Ministry of Forestry as follows: 

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	 	a)	 Non-Tax State Revenue of the forest area usage is imposed based on
baseline of the forest area usage and changes on the forest area usage in each category of the L1, L2, and L3; 

  

	 	b)	 formula: 

Non-Tax State Revenue = {(L1 x 1 x tariff) + (L2 x 4 x tariff) + (L3 x 7 x tariff)} Rp/year 

Note: 
  

							
	    	 	L1	  	=	  	forest area usage in hectares for active open-pit mine, permanent infrastructure and development areas and/or supporting areas for the safeguarding activities, which are parts of the plan
prepared in the baseline of the forest usage;
				
		 	L2	  	=	  	forest area usage in hectares which is temporary in nature and technically able to be reclaimed, which are parts of the plan prepared in the baseline of the forest usage;
				
		 	L3	  	=	  	forest area usage in hectares that permanently damaged in certain parts and that after reclamation still cannot be optimally reclaimed, which are parts of the plan prepared in the baseline of the forest usage.

  

	 	c)	 tariffs: 

  

	 	(1)	 The Forest Area Usage for Mining Activities and Supporting Infrastructures: 

 

	 	(a)	 Protective Forest = Rp4,000,000/Ha/Year 

 

	 	(b)	 Production Forest = Rp3,500,000/Ha/Year 

 

	 	(2)	 The Forest Area Usage for Development Area and/or Supporting Area for Mining Activities Security:

  

	 	(a)	 Protective Forest = Rp2,000,000/Ha/Year 

 

	 	(b)	 Production Forest = Rp1,750,000/Ha/Year 

 

	 	2)	 other than the Non-Tax State Revenue in the forest area usage as
referred to in number 1), the types of other Non-Tax State Revenues in the field of forestry and environment are imposed with tariffs in accordance with the provisions of the laws and regulations effective at
the time of this Ministerial Decree, except for the Non-Tax State Revenue related to the services performed by the Government, the Forest Resource Provision, and the Reforestation Fund. 

 

	 	d.	 Portion of the Central Government amounting to 4% (four percent) of net profit 

 

	 	1)	 Starting from the beginning of the next calendar year after the year of the Production Operation IUPK is
issued, the holder of Production Operation IUPK is required to fulfill the obligation to pay 4% (four percent) of the annual net profit to the Central Government in accordance with provisions of the laws and regulations effective at the date this
Ministerial Decree is stipulated, until the expiration of the Production Operation IUPK; 

  

	 	2)	 The annual net profit as referred to in number 1) is the net profit after deducting the Corporate Income Tax,
based on the financial statement of 

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the holder of Production Operation IUPK that has been audited by the public accountant office in accordance with the laws and regulation in the field of limited liability companies;

  

	 	3)	 provisions concerning the procedure for imposition, collection and payment/remittance of the Non-Tax State Revenues for the holder of Production Operation IUPK over the rights and obligations of other non-tax state revenues from the Central Government Portion of 4%
(four percent) from the net profit is implemented in accordance with the provisions of laws and regulations effective at the time this Ministerial Decree is stipulated. 

 

	 	e.	 Other Non-Tax State Revenues 

 

	 	1)	 fulfill obligations of other Non-Tax State Revenues, including the Non-Tax State Revenue from the sectors of transportation and manpower in accordance with the provisions of the laws and regulations in the field of the non-tax state revenue
and other related laws and regulations prevailing from time to time; 

  

	 	2)	 provisions concerning the procedure for imposition, collection and payment/remittance of the Non-Tax State Revenues for the holder of Production Operation IUPK over the rights and obligations of other Non-Tax State Revenue as referred to in number 1) are implemented
in accordance with the provisions of the laws and regulations. 

  

	4.	 Local Revenues 

  

	 	a.	 Portion of the Local Government amounting to 6% (six percent) of net profit 

 

	 	1)	 starting from the beginning of the next calendar year after the year the Production Operation IUPK is issued,
the holder of Production Operation IUPK is required to fulfill the obligation to pay 6% (six percent) of the net profit to the Local Governments in accordance with the provisions of the laws and regulations in effect at the date this Ministerial
Decree is stipulated, which applies until the expiration of the Production Operation IUPK with the provisions: 

  

	 	a)	 the provincial government obtains the portion of 1% (one percent); 

 

	 	b)	 the regency/city government obtains the portion of 2.5% (two point five percent); and 

 

	 	c)	 the other regency/city government in the same province obtains the portion of 2.5% (two point five percent),
which is equally shared. 

  

	 	2)	 the annual net profit as referred to in number 1) is the net profit after deducting the Corporate Income Tax,
based on the financial statement that has been audited by the public accountant office in accordance with the laws and regulation in the field of limited liability companies. 

 

	 	3)	 provisions on the remittance procedure of the Local Governments Portion of the 6% (six percent) from the net
profit in accordance with the provisions of the regulations which are issued by the minister who conducts government affairs in the field of state finance. 

  

	 	b.	 fulfill obligations of Local Taxes and Local Retributions in accordance with the provisions of the Local
Regulation of Papua Province concerning Local Taxes, the Local Regulation of Papua Province concerning Provision of Investment Incentives and Eases, the Local Regulation of Mimika Regency concerning Local Taxes and the Local Regulation of Mimika
Regency Number 2 Year 2018 

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concerning Provision of Investment Incentives and Eases, effective at the time this Ministerial Decree is stipulated, as follows: 

 

	 	1)	 Papua Province’s taxes includes the Vehicle Tax, the Vehicle Title Transfer Fee, and the Surface Water Tax
is conducted in accordance with local regulations on respective Taxes, and may be given Tax incentives in the form of reduction, relief or exemption from the local taxes, which are stipulated in the Governor Regulation; 

The Surface Water Tax will be fixed equivalent to US$15,000,000.00 (fifteen million United States Dollars) per year and is valid until 2041
which will be regulated in the Local Regulation of Papua Province concerning the Granting of Incentives and Provision of Investment Ease. 
  

	 	2)	 Mimika Regency Tax with the provisions as follows: 

 

	 	a)	 the amount of the Ground Water Tax is determined by multiplying the volume of water collection with the Ground
Water Tax tariff of 20% (twenty percent) with the Ground Water Acquisition Value (NPAT) which is the multiplication of the Base Price of Ground Water hereunder: 

 

	 	(1)	 Rp5,700/m3 for Non Commercial; 

 

	 	(2)	 Rp6,500/m3 for Commercial; and 

 

	 	(3)	 Rp16,500/m3 for Industry. 

The volume of water collection for the Non Commercial, Commercial and Industry needs as mentioned in the above number (1), (2) and (3), is
based on the realization of water collection at the water debit measuring device; 
  

	 	b)	 the amount of the Non-minerals and Rocks (“MBLB”) Tax is
determined by multiplying the MBLB collection volume with the MBLB Tax tariff of 25% (twenty five percent) with the MBLB Collection Result Sales Value amounting to: 

 

	 	(1)	 Rp40,000/m3 for sands and gravels; and

  

	 	(2)	 Rp100,000/m3 for rocks, 

with collection volume: 
  

	 	(1)	 for sand and gravel in point (1) above is equal to 900,000
m3 per year; and 

  

	 	(2)	 for rocks in point (2) above is equal to 70,200 m3
per year. 

  

	 	c)	 the amount of the Street Lighting Tax is determined by multiplying the electricity usage volume with the Street
Lighting Tax tariff of 1.5% (one point five percent) with the electricity basic price of Rp550/Kwh with volume of 1,972,802,373 Kwh; 

  

	 	d)	 Amount of the Rural and Urban Land and Building Tax is determined in accordance with the Local Tax effective at
the time of this Ministerial Decree stipulated; 

  

	 	e)	 The holder of Operation Production IUPK is not subject to Local Taxes obligations other than Local Taxes as
stipulated in letter a), letter b), letter c), and letter d); and 

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	 	f)	 in the event of changes in tariff that cause an increase or decrease in the tax payable, the tax tariff
stipulated in this Ministerial Decree shall continue to prevail until the expiration of the Operation Production IUPK. 

This Production Operation IUPK, especially with regard to the payment obligations of the local taxes, as mentioned in the above number 4
letter b, is the form of approval for the provision of investment incentives and convenience effective at the date of this Ministerial Decree. 
  

	5.	 The holder of the Operation Production IUPK during the period of the Operation Production IUPK in accordance
with the FOURTH Dictum of this Ministerial Decree will not be imposed with new types of tax and/or new non-tax state revenue in the event there is an amendment and/or replacement/revocation of the provisions
of the laws and regulations related to the types of state revenues and regional revenues as stipulated in number 1 letter a point 1) and point 2), number 1 letter e, number 3 letter a, number 3 letter b point 1) letter a) letter b) letter c ),
number 3 letter c point 1), number 3 letter d point 1) and point 2), number 4 letter a, and number 4 letter b. 

  

	6.	 For types of state revenue and local revenue other than referred to in number 5, in the event there is
amendment or enactment of laws and regulations that create new type of state revenue and local revenue and are not a replacement of type of state revenue and local revenue as referred to in this Ministerial Decree, the holder of the Production
Operation IUPK is not subject to this type of state revenue and local revenue. 

 MINISTER OF ENERGY AND MINERAL
RESOURCES 
 THE REPUBLIC OF INDONESIA, 

IGNASIUS JONAN 
 Copy is in
accordance with the original document 
 MINISTRY OF ENERGY AND MINERAL RESOURCES 

HEAD OF LEGAL BUREAU 
 [signed and
stamped] 
 Hufron Asrofi, S.H., M.Hum. 

NIP 196010151981031002 

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 ANNEX VIII 

DECREE OF THE MINISTER OF ENERGY AND MINERAL RESOURCES OF THE REPUBLIC OF INDONESIA 

NUMBER    : 2053K/30/MEM/2018 

DATE          : 21 December 2018 

REGARDING 
 PRODUCTION OPERATION
SPECIAL MINING BUSINESS LICENSE 
 PT FREEPORT INDONESIA 

OBLIGATION TO CONDUCT DOMESTIC PROCESSING AND REFINING OF THE ENTIRE 

MINING PRODUCTS 
 The holder of the Production
Operation IUPK is obliged to conduct processing and refining of the entire mining products domestically with the following provisions: 
  

	1.	 The holder of the Production Operation IUPK is obliged to construct a new refining facility for the entire
mining products domestically, whether independently or jointly with another party; 

  

	2.	 The construction of the new refining facility referred in number 1 is obliged to be completed within 5 (five)
years as of this Ministerial Decree in the form of: 

  

	 	a.	 construction of new copper concentrate refining facility with input capacity of 2 (two) million tons per year
to produce copper cathode, hereinafter referred to as the Copper Refining Facility; and 

  

	 	b.	 construction of further refinery facility of anode slimes with an input capacity of 6,000 (six thousand) tons
per year to produce precious metal mineral, hereinafter referred to as the Precious Metal Refining Facility. 

  

	3.	 The holder of the Production Operation IUPK is obliged to compose a construction plan for new domestic refining
facilities in accordance with the timeline as referred to in number 2 within a maximum period of 30 (thirty) days after this Ministerial Decree is issued in order to be verified by the Independent Verifier by observing the previous progress of the
new refining facilities; 

  

	4.	 The holder of the Production Operation IUPK is obliged to comply with the physical progress level of the
construction of the new domestic refining facility in accordance with the refining facility construction plan which has been verified by the Independent Verifier and approved by the Minister c.q. Director General of Mineral and Coal;

  

	5.	 The physical progress of the construction of the refining facility as referred to in number 4 must be at least
90% (ninety) percent) from the physical progress plan calculated cumulatively until the last 1 (one) month by the Independent Verifier; 

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	6.	 If based on the verification conducted by the Independent Verifier, the physical progress of the construction
of the refining facility does not achieve 90% (ninety percent) of the 6 (six) monthly physical progress plan , the recommendation for export of the results of mining product processing in the form of concentrate of the holder of the Production
Operation IUPK may be revoked, except if there are any less burdensome laws and regulations; 

  

	7.	 The holder of Production Operation IUPK may be granted with approval of force majeure and hampering situation
which impedes the achievement of at least 90% (ninety percent) of the refining facility construction physical progress plan by the Director General based on a written report of the holder of the Production Operation IUPK as the basis for the
evaluation of the application for recommendation for export extension of the results of mining product processing in the form of concentrate; 

  

	8.	 The holder of the Production Operation IUPK or business entity that construct and/or operate the new refining
facilities is entitled to obtain exemptions of the import duty and taxes in the framework of import for the importation of capital goods, equipment and machineries that are used for the construction or the development of the new refining facilities
in accordance with the provisions of the laws and regulations regarding the exemption of import duty for the importation of machineries and goods and materials for the construction and development of industry in the framework of investment.

  

	9.	 The holder of the Production Operation IUPK or business entity that constructs and/or operates the new refining
facilities is entitled to obtain taxation facilities for the construction or the operation of the new refining facilities in accordance with provisions of the laws and regulations regarding income tax incentive for investments in certain business
fields and/or certain areas regarding the granting of income tax reduction incentives, and/or regarding the importation or delivery of certain taxable goods which are strategic in nature and exempted from imposition of value added tax;

  

	10.	 The holder of the Production Operation IUPK may withdraw the Surety Guarantee of the Construction of the
Refining Facilities and its interest at the time the physical progress of the construction of the domestic refining facilities as referred to in number 3 has reached 35% (thirty five percent) of the new refining facility construction plan as
referred to in number 3 pursuant to verification conducted by the independent verifier 

  

	11.	 If after 5 (five) years since this Ministerial Decree the physical progress of the construction of the domestic
refining facilities have not yet reached 35% (thirty five percent), the Surety Guarantee of the Construction of the Refining Facilities and its interest are remitted to state funds through a designated bank in accordance with provisions of the laws
and regulations. 

  

	12.	 The holder of the Production Operation IUPK may conduct sales of the processed mining products overseas by
being imposed with export duty in accordance with the 

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provisions of the laws and regulations, including Ministry of Finance Regulation Number 164/PMK.010/2018 regarding Export Goods Determination that are subject to Export Duty and Export Duty
Rates; 

  

	13.	 The holder of the Production Operation IUPK is obliged to adjust long term concentrate sale and purchase
contracts with parties abroad in order to fulfill the domestic refining obligation in accordance with this Ministerial Decree; 

  

	14.	 In the event of a force majeure or hampering situation that occurs after the completion or the operation of the
new refining facility, the holder of the Production Operation IUPK may conduct sale of concentrates overseas; 

  

	15.	 In the event of a force majeure or the hampering situations that occur after the completion or the operation of
new refining facility, and the domestic demand has been fulfilled, the holder of the Production Operation IUPK or business entity that operates the new refining facilities may conduct sale of side products of anode slimes overseas;

  

	16.	 In the event domestic demand does not yet exist, the holder of the Production Operation IUPK or business entity
that operates the new refinery facilities may conduct sales of the by-products resulting from further refining of the anode slimes overseas; 

 

	17.	 The holder of the Production Operation IUPK will not be imposed with an additional obligation to construct
refining facilities other than those determined under this Ministerial Decree; and 

  

	18.	 The holder of the Production Operation IUPK or business entity that operates the new refining facility will not
be imposed with any divestment obligation. 

  

	
	MINISTER OF ENERGY AND MINERAL RESOURCES
	OF THE REPUBLIC OF INDONESIA,
	
	IGNASIUS JONAN

 Copy is in accordance with the original document 

MINISTRY OF ENERGY AND MINERAL RESOURCES 

HEAD OF LEGAL BUREAU 
 [signed and
stamped] 

  -
 42
 - 
  

 Hufron Asrofi, S.H., M.Hum. 

NIP 196010151981031002

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