Mining Production Certainty Impacts Company Contributions to the State
Certainty of production in the mining sector is considered a crucial factor in maintaining the mineral and coal industry’s contribution to state revenue. Amidst efforts to strengthen downstream processing and national economic independence, the sustainability of investment and operational certainty in the mining sector are important assets for realising a sovereign, just, and prosperous Indonesia.
Eddy Soeparno, Deputy Chairman of Commission XII of the Indonesian House of Representatives (DPR RI), stated that increased investment and production sustainability to support mineral downstream processing still need continuous improvement. Moreover, the contribution to state revenue through dividends, taxes, non-tax state revenue (PNBP), and royalties from the mining sector remains very dominant.
Therefore, to support these achievements, he emphasised that legal certainty and policy consistency are important factors for maintaining investor confidence and strengthening Indonesia’s competitiveness. “Legal certainty and policy consistency are important factors for maintaining investor confidence and strengthening Indonesia’s competitiveness,” said Eddy in his statement on Saturday (8/8).
The contribution to the state is reflected in the performance of companies under the Mining Industry Holding MIND ID throughout the 2025 financial year. As the holding parent, MIND ID deposited dividends to the state amounting to Rp12.6 trillion, supported by the performance of six holding members: PT Bukit Asam Tbk (PTBA), PT Aneka Tambang Tbk (ANTAM), PT Timah Tbk, PT Vale Indonesia Tbk, PT Indonesia Asahan Aluminium (INALUM), and PT Freeport Indonesia.
Tony Wenas, President Director of Freeport Indonesia, said that the company’s contribution to the state comes from various revenue instruments, not just from a single source. In 2026, Freeport Indonesia is estimated to be able to contribute around US$2.6 billion, primarily derived from dividends of around US$1.1 billion, taxes of around US$1 billion, and royalties of around US$500 million.
“The revenue structure shows that the continuity of production and investment in the mining sector has a direct impact on the amount of contribution received by the state, whether through dividends, taxes, or royalties,” he explained.
In addition to dividends, companies within MIND ID are also major contributors to state revenue from the mineral and coal sector through royalty and PNBP payments in accordance with applicable regulations. PT Bukit Asam is one of the main contributors to coal royalties, while ANTAM, PT Timah, and PT Freeport Indonesia provide significant contributions through royalties on nickel, tin, copper, and gold commodities.
The large fiscal contribution demonstrates the strategic role of the MIND ID Group in supporting the state budget (APBN) while also backing the national downstream processing agenda. This contribution is an important part of strengthening national economic resilience, reducing dependence on external financing sources, and ensuring that the benefits of natural resource management can be felt by the public through various development programmes.