Indonesia Could Receive a Windfall of Rp100 Trillion from This Gold Mine

Indonesia could receive a windfall from PT Freeport Indonesia’s gold and copper mine, with the company projecting contributions to state revenues surging to US$6 billion, equivalent to Rp100 trillion, per year starting from 2028.

This estimate aligns with plans to achieve normal production capacity at the Grasberg Block Cave (GBC) underground mine following the recovery phase.

President Director of PT Freeport Indonesia, Tony Wenas, explained that the projected contribution encompasses various components, from corporate taxes and Non-Tax State Revenues (PNBP) to dividends. He stated that the payment amounts will continue to grow significantly in line with increases in copper and gold metal production volumes.

“In 2027, the total will increase to US$4.3 billion, or nearly Rp70 trillion, and from 2028 onwards, around US$6 billion. This US$6 billion equates to approximately Rp100 trillion annually in the form of taxes, PNBP, and dividends for the state,” he said during a Hearing with Commission VII of the Indonesian House of Representatives (DPR RI) in Jakarta, quoted on Thursday (16/4/2026).

The rise in state payments is based on assumptions of stable mineral prices and the return of operations to normal levels of 200,000 tonnes of ore per day in 2027. The company uses assumptions of a copper price at US$4.75 per pound and a gold price of US$4,000 per ounce in its long-term calculations.

“And also with current mineral prices, if we assume copper at US$4.75 per pound and gold at US$4,000 per ounce, whereas currently gold is actually at US$5,000 per ounce,” Tony added.

For the 2028 and 2029 period, copper production volume is predicted to reach 1.7 billion pounds of copper, while gold production hits 43 tonnes per year. These targets represent the highest production levels, which will be maintained consistently to provide added value for shareholders and the state.

“In 2028, it will already reach a higher level of 1.7 billion pounds of copper and 43 tonnes of gold, and thereafter it will hover around the figures like in 2028 and 2029,” he clarified.

To support these targets, PTFI is currently ensuring the reliability of mining infrastructure at Grasberg Block Caving. The company is undertaking various initiatives to guarantee smooth operations and safety in the underground mine so that production remains sustainable through 2029 and beyond.