Freeport's Contribution to State Coffers Forecast to Surge Past Rp120 Trillion by 2030
PT Freeport Indonesia (PTFI) projects that the company’s contribution to the state will surge to more than US$7 billion, or around Rp120 trillion per year, by 2030. The estimate is supported by the normalisation of production capacity, both at the upstream mining side and processing facilities (smelter).
PTFI President Director Tony Wenas explained that the company’s contributions to the state will increase year on year.
“Once we reach full production capacity, we see that state revenues could exceed US$7 billion per year. Converted into rupiah, that is roughly Rp120 trillion per year, and so on in the years ahead,” he said during a hearing with Commission XII of the House of Representatives (DPR RI) in Jakarta on Tuesday (14/7/2026).
In detail, the increase in contributions is calculated based on assumed mineral prices, particularly copper at US$6 per pound and gold at US$4,500 per ounce.
In 2026, contributions to the state are estimated to reach US$2.6 billion, equivalent to Rp47.05 trillion, but that figure is predicted to rise to US$4.7 billion, or Rp85.09 trillion, in 2027 in line with increased mining production capacity.
“Looking at our projections for 2027, in line with our production increase, state revenues could reach US$4.7 billion, of which US$800 million is non-tax state revenue (PNBP) including royalties, then taxes including corporate income tax of US$1.9 billion, and also dividends of US$1.9 billion for the government through MIND ID,” Tony explained.
The company’s plan to restore production capacity is targeted to reach 100% by the end of 2027. This follows a production ramp-up of 65% this year and 75% in the first half of 2027.
Alongside this, the company is also developing a new mine, the Kucing Liar block, which is scheduled to begin production in 2029.
“In 2027 we could reach 1.2 billion pounds of copper and one million ounces of gold, or around 31 tonnes. And in 2028 there is another increase to 1.6 billion pounds of copper and 1.4 million ounces of gold, or 43 tonnes of gold, and so on until 2030,” he said.
In addition, the company is targeting the Manyar smelter in Gresik to resume production from September this year. Copper cathode production from the smelter is projected to reach 600,000 tonnes per year.
“State revenues, consisting of taxes, dividends and royalties, did indeed fall to US$2.6 billion from US$4.3 billion last year. But we see that projections for 2027 could reach US$4.7 billion,” he concluded.