Indonesian Political, Business & Finance News

Freeport Contributes Rp75 Trillion to the State, Central Papua Receives Rp13.48 Trillion

| | Source: REPUBLIKA Translated from Indonesian | Mining
Freeport Contributes Rp75 Trillion to the State, Central Papua Receives Rp13.48 Trillion
Image: REPUBLIKA

PT Freeport Indonesia (PTFI) recorded a total contribution to the state of Rp75 trillion throughout 2025. This payment includes dividends to the government through MIND ID, net profit shares for the central and regional governments, and various other fiscal obligations. PTFI President Director Tony Wenas stated that the company has again deposited an additional net profit share for the 2025 fiscal year amounting to Rp4.8 trillion to the central and regional governments. This addition brings Freeport’s total contribution to the state to Rp75 trillion. “The company always prioritises transparency and accountability in fulfilling its obligations to the state and regions, with the hope that it can be utilised as much as possible for the greatest benefit of the people in their respective areas,” Tony said in an official statement on Friday (8/5/2026). From the total contribution, dividends to MIND ID as the government’s shareholder amount to Rp16.9 trillion. Meanwhile, the regional government’s share is recorded at Rp13.48 trillion, consisting of Rp10.6 trillion paid throughout 2025 and Rp2.88 trillion from the company’s 2025 net profit distribution. The details of the additional Rp4.8 trillion net profit share distribution include Rp1.92 trillion to the central government, Rp720.5 billion to Central Papua Province, Rp1.2 trillion to Mimika Regency, and Rp137.2 billion each to seven other regencies in Central Papua. Tony noted that contributions to the state have the potential to continue increasing along with the still relatively high mineral commodity prices. However, PTFI’s operations are currently in the recovery phase following an incident at the Grasberg Block Cave (GBC) underground mine. “With production levels now reaching around 40 to 50 percent, the company targets returning to full capacity in early 2028,” Tony said. In addition to payments to the state, Freeport also claims to continue implementing social investments in the areas around its operational regions. Throughout 2025, the company’s social investment value reached Rp2 trillion and will continue at around 100 million US dollars or equivalent to Rp1.7 trillion per year until 2041.

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