DPR says continued Freeport investment drives Papua's development
Commission XII of the House of Representatives (DPR RI) has stated that PT Freeport Indonesia (PTFI), a member of the MIND ID Mining Industry Holding, has played a role in driving social and economic development for Papuan communities through various social and environmental responsibility (TJSL) programmes.
In a statement received in Jakarta on Thursday, legislators assessed that Freeport Indonesia’s presence over decades has delivered tangible benefits, both for the state and for communities living around the mine’s operational areas.
Arif Riyanto Uopdana, a member of Commission XII, said during a hearing (RDP) with PT Freeport Indonesia on Wednesday (15 July) that the company has demonstrated long-term commitment through continued investment and operational sustainability.
“I appreciate the renewed investment agreement of 12 per cent with the Indonesian government. This is a new breakthrough regarding the business continuity of PT Freeport Indonesia, whereby its operating permit has been extended in line with the life of its reserves,” he said.
The continuity of this investment will provide certainty of economic benefits while opening up room for improving the welfare of Papuan communities.
Echoing this view, Commission XII member Alfons Manibui said Freeport has delivered significant benefits for regional governments and the people of Papua.
“We would like to thank Freeport for its performance, which to this day continues to deliver benefits for the state. We must also acknowledge that Freeport has provided many benefits for regional governments and especially for communities living around the company’s operational areas,” said Alfons.
According to him, Freeport must continue to be a national asset capable of sustaining development in the Land of Papua.
Appreciation was also expressed by Commission XII member Irsan Sosiawan Gading, who viewed improved company performance as needing to be accompanied by strengthened community empowerment programmes.
“I appreciate PT Freeport’s performance, which has contributed to the state and state revenue. What is equally important is attention to communities around the mine, so that the benefits of the company’s presence are genuinely felt by local residents,” 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 US$2.6 billion, rising to approximately US$4.7 billion in 2027, comprising around US$1.9 billion in tax revenue, US$1.9 billion in dividends to the government via MIND ID, and roughly US$800 million in PNBP, including royalties.
Once mining operations return to normal, the company’s contribution is projected to exceed US$7 billion, or around Rp120 trillion, per year.
Beyond its fiscal contribution, Freeport has also consistently carried out social investment in Papua, allocating approximately US$100 million each year for community development programmes.
These programmes cover education, health, economic empowerment, basic infrastructure development, capacity building for indigenous communities, and improvements to the quality of public services in areas surrounding its operations.