Indonesian Gold Mining Giant Forecast to Contribute Rp100 Trillion to the State

PT Freeport Indonesia (PTFI) projects its contribution to state revenues to increase significantly 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.

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

“In 2027, the total will rise 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 to the state,” he said during a Hearing with Commission VII of the Indonesian House of Representatives in Jakarta, quoted on Tuesday (14/4/2026).

The increase in state contributions 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 for these 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 the current gold price is actually US$5,000 per ounce,” Tony added.

For the 2028 and 2029 period, copper production volume is projected to reach 1.7 billion pounds of copper, while gold production will hit 43 tonnes per year. These targets represent the highest production levels, which will be maintained consistently to provide added value to 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 for 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 implementing various initiatives to guarantee smooth operations and safety in the underground mine, so that production remains sustainable through 2029 and beyond.