DPR says continued Freeport investment drives Papua's development

Commission XII of the Indonesian House of Representatives (DPR RI) has stated that the contribution of PT Freeport Indonesia (PTFI), a member of the Mining Industry Holding MIND ID, has played a role in driving the social and economic development of the Papuan people through various social and environmental responsibility (TJSL) programmes. Legislators, in a statement received in Jakarta on Thursday, assessed that Freeport Indonesia’s decades-long presence has provided tangible benefits, both for the state and for communities around the mining operational areas. Member of Commission XII DPR RI Arif Riyanto Uopdana, during a hearing (RDP) with PT Freeport Indonesia on Wednesday (15/7), said the company has demonstrated a long-term commitment through continued investment and operational sustainability. “I appreciate the agreement for a 12 percent reinvestment with the Indonesian government. This is a new breakthrough regarding the business sustainability of PT Freeport Indonesia, where its business licence is extended according to the life of its reserves,” he said. The sustainability of this investment will provide certainty of economic benefits while opening up space for improving the welfare of the Papuan people. Similarly, Commission XII DPR RI member Alfons Manibui said Freeport has provided great benefits for the regional government and the people of Papua. “We would like to thank Freeport for its performance, which to this day continues to provide benefits for the country. We must also acknowledge that Freeport has provided many benefits for the regional government and especially the communities around the company’s operational areas,” said Alfons. According to him, Freeport must continue to be a national asset capable of maintaining the sustainability of development in the Land of Papua. Appreciation was also conveyed by Commission XII DPR RI member Irsan Sosiawan Gading. He viewed that the improvement in the company’s performance must be accompanied by the strengthening of community empowerment programmes. “I appreciate the performance of PT Freeport, which has contributed to the state and state revenue. What is also very important is attention to the communities around the mine so that the benefits of the company’s presence are truly felt by the local people,” he said. PT Freeport Indonesia is one of the largest contributors to state revenue through taxes, dividends, royalties, and non-tax state revenue (PNBP). In 2026, the company’s contribution to the state is estimated to reach around USD 2.6 billion, then increase to around USD 4.7 billion in 2027, consisting of approximately USD 1.9 billion in tax revenue, USD 1.9 billion in dividends to the government through MIND ID, and around USD 800 million in PNBP, including royalties. When mining operations return to normal, the company’s contribution is projected to exceed USD 7 billion, or around Rp120 trillion, per year. Beyond fiscal contributions, Freeport also consistently carries out social investments in Papua by allocating around USD 100 million annually for community development programmes. These programmes cover education, health, economic empowerment, basic infrastructure development, indigenous community capacity building, and improving the quality of public services around the operational areas.