Indonesian Political, Business & Finance News

House Appreciates MIND ID Group's Contribution to Developing Papua

| | Source: SWARAKEPRI.COM Translated from Indonesian | Mining

Commission XII of the Indonesian House of Representatives (DPR RI) has commended PT Freeport Indonesia (PTFI), a member of the MIND ID Mining Industry Holding, for its role in driving social and economic development for Papuan communities through various social and environmental responsibility (TJSL) programmes.

Legislators assessed that Freeport Indonesia’s presence over several decades has delivered tangible benefits, both to the state and to communities surrounding the mine’s operational areas.

Arif Riyanto Uopdana, a member of Commission XII, said Freeport has demonstrated a long-term commitment to Indonesia through continued investment and the sustainability of the company’s operations.

“I applaud the agreement for a further 12 per cent investment together with the Indonesian government. This is a new breakthrough regarding the continuity of PT Freeport Indonesia’s business, with its operating permit extended in line with the life of its reserves,” Arif said during a hearing with PT Freeport Indonesia.

He judged that the continuity of the investment would provide certainty of economic benefits while opening space for improving the welfare of Papuan communities.

Similarly, Alfons Manibui, a Commission XII member from the Golkar Party faction, said Freeport has brought enormous benefits to regional governments and the people of Papua.

“We wish to thank Freeport for its performance, which to this day continues to deliver benefits to the state. We must also acknowledge that Freeport has provided many benefits to regional governments and, above all, to communities living around the company’s operational areas,” said Alfons.

In his view, Freeport must continue to serve as a national asset capable of safeguarding the sustainability of development in the Land of Papua.

Appreciation was also expressed by Irsan Sosiawan Gading, a Commission XII member from the NasDem Party faction. He said the company’s improved performance must continue to be accompanied by strengthened community empowerment programmes.

“I applaud 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 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 US$2.6 billion, rising to around US$4.7 billion in 2027, comprising approximately US$1.9 billion in tax receipts, US$1.9 billion in dividends to the government via MIND ID, and around US$800 million in non-tax state revenue, including royalties. Once mining operations return to normal, the company’s contribution is projected to exceed US$7 billion, or roughly Rp120 trillion, per year.

Beyond its fiscal contribution, Freeport also consistently carries out social investment in Papua, allocating around US$100 million each year for community development programmes. These span education, health, economic empowerment, basic infrastructure development, capacity building for indigenous communities, and improvements to the quality of public services around the operational area.

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