If Mine Recovers, Freeport Could Contribute Rp100 Trillion to Indonesia

PT Freeport Indonesia (PTFI) projects its contribution to state revenue could increase to between Rp100 trillion and Rp120 trillion per year, provided the company’s underground mining production fully recovers. PTFI targets achieving 100% production recovery by the end of 2027. In line with this recovery effort, the value of payments to the state treasury is projected to more than double from current figures.

“And once we are at 100%, the contribution to the state could be extraordinarily large, more than Rp100 trillion, perhaps Rp120 trillion every year. That is roughly Freeport’s contribution to the state,” explained PTFI President Director Tony Wenas during a ceremony marking Indonesia’s 81st Independence Day in Tembagapura, Central Papua.

To ensure the sustainability of payments to the state, PTFI is also advancing the development of the Kucing Liar underground mine with a total investment value of Rp72 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 a foundation for the company’s sustainability and its benefits for the nation and state,” he said.

For 2026, the copper and gold mining company is targeting a state contribution of Rp47 trillion, as production is only expected to reach 65% due to a landslide incident at the Grasberg Block Cave underground mine.

“We can only produce at 65%. But it is projected that state revenue from Freeport Indonesia could reach Rp47 trillion. And next year it will certainly be higher because in the first semester we can reach 75%, and by the end of next year we are heading towards 100%,” Tony explained.

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.