Freeport Targets State Contribution of Rp 47 Trillion in 2026
PT Freeport Indonesia (PTFI) projects that the company’s contribution to state revenue could increase this year, reaching Rp 47 trillion from tax payments, royalties and the government’s share of profits.
President Director of PTFI Tony Wenas said efforts to increase mining production continue to be pushed, with capacity expected to reach 65% by the end of 2026.
“Say that we can only produce 65%. But it is projected that state revenue from Freeport Indonesia could reach Rp 47 trillion. And next year it will certainly be higher because next year we can reach 75% in the first semester and by the end of next year we are heading towards 100%,” said Tony in his remarks at the 81st Indonesian Independence Day ceremony in Tembagapura, Central Papua, as quoted on Tuesday (18/8/2026).
Throughout 2025, PTFI was recorded as having deposited up to Rp 75 trillion to the state, of which Rp 13 trillion was allocated to regional governments in the Central Papua region. This contribution is expected to be maintained through long-term investment certainty and the extension of the Special Mining Business Permit (IUPK) beyond 2041.
“This step is very important to ensure mining conservation, long-term investment sustainability, maintaining jobs for around 30,000 workers, and maintaining contributions to the state amounting to tens of trillions, even potentially reaching hundreds of trillions each year,” he added.
The company’s state revenue contribution target this year is driven by a production plan of 800 million pounds of copper and 700,000 ounces of gold.
PTFI is targeting a full recovery of company production to 100% by the end of 2027. In line with this recovery effort, the value of deposits to the state treasury is projected to more than double from current figures.
“And when we are at 100%, the contribution to the state could be extraordinarily large, more than 100 trillion, perhaps 120 trillion each year. So that is roughly Freeport’s contribution to the state,” he explained on the sidelines of the event.
To ensure the sustainability of state deposits, PTFI is also pushing the development of the Kucing Liar underground mine with a total investment value of Rp 72 trillion. The project is projected to produce more than 7 billion pounds of copper and 6 million ounces of gold over its operational life.
“This investment shows that amid the recovery period, Freeport Indonesia continues to move forward and build the foundation for the company’s sustainability and its benefits for the nation and state,” he concluded.
The company recorded gold production of 276,000 ounces in the first six months of 2026, a decline compared to the first half of 2025, which reached 595,000 ounces.
Meanwhile, copper production stood at 300 million pounds, down from the previous year’s realisation of 655 million pounds.
“PTFI’s overall production rate is expected to approach 65% in the second half of 2026, 80% by mid-2027, and near full capacity by the end of 2027,” wrote the FCX first-half 2026 report.
The decline in production volume was caused by low ore processing rates during the remediation and restoration phase of the GBC mine infrastructure. However, the company noted that progress on Production Blocks 2 and 3 has been completed, so mining activity has begun to increase since late March 2026.
“Following the external mud overflow incident in September 2025, PTFI has advanced a series of activities to address the incident and remains focused on increasing safe and sustainable operational capacity,” the report stated.