Freeport Indonesia Pays Rp75 Trillion to State Budget

8 hours ago 6

TEMPO.CO, Jakarta - Gold and copper mining giant PT Freeport Indonesia has funneled a total of Rp75 trillion into state revenue from 2025 through early 2026. This aggregate figure includes taxes, royalties, dividends, and the distribution of net profits allocated to both central and regional governments.

Most recently, on April 8, 2026, the company disbursed a portion of its net profits from the 2025 fiscal year, amounting to Rp4.8 trillion, to central and regional authorities.

PTFI President Director Tony Wenas stated that the company remains steadfast in fulfilling its obligations to the nation with transparency and accountability.

"The company always prioritizes transparency and accountability in meeting its commitments to the state and the regions, with the hope that these funds can be utilized for the maximum benefit of the people in their respective areas," Tony remarked in a written statement on Saturday, May 9, 2026.

Tony explained that of the Rp75 trillion total, Rp16.9 trillion was issued as dividends to MIND ID, the representative of the Indonesian government's shareholding. Furthermore, regional governments received a total of Rp13.48 trillion, which includes Rp10.6 trillion paid throughout 2025 and an additional Rp2.88 trillion from the 2025 net profit distribution.

Regarding the breakdown of the recent Rp4.8 trillion distribution, the central government received Rp1.92 trillion, while Central Papua was allocated Rp720.5 billion, and Mimika Regency received Rp1.2 trillion.

Additionally, seven other regencies within Central Papua, specifically Nabire, Paniai, Puncak, Puncak Jaya, Dogiyai, Deiyai, and Intan Jaya, each received Rp137.2 billion.

Tony noted that the company's contributions have the potential to climb further as mineral commodity prices remain relatively high. However, PTFI's mining operations have not yet reached full recovery following a technical incident at the Grasberg Block Cave underground mine.

"Currently, PTFI's operations are still in a recovery phase following the incident at the Grasberg Block Cave (GBC) underground mine, with production levels currently hovering around 40 to 50 percent. The company aims to return to full capacity by early 2028," Tony said.

Beyond its formal payments to the state, PTFI has also earmarked social investment funds for communities surrounding the mining site. Throughout 2025, the company's social investment reached a value of Rp2 trillion.

"The company is committed to sustaining this program with an annual allocation of approximately US$100 million, or roughly Rp1.7 trillion, through 2041," he added.

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