State Revenue from Freeport Projected to Fall to USD 2.6 Billion
PT Freeport Indonesia (PTFI) has projected that state revenue from the company’s operational activities will fall by approximately 39.5 percent to US$2.6 billion in 2026. The actual contribution to the state in 2025 reached US$4.3 billion.
PTFI President Director Tony Wenas detailed that state revenue in 2026 will consist of US$1 billion in taxes, US$1.1 billion in dividends channelled to the government through MIND ID, and US$500 million in non-tax state revenue (PNBP) including royalties.
Tony explained that the decline in state revenue is in line with the mine’s production not yet recovering following a landslide at Grasberg. The company is currently carrying out repairs and ensuring the entire mining area is safe before gradually increasing production (ramp-up).
According to him, upstream production capacity in 2026 is estimated to reach only about 65 percent of full capacity. “As a result of the landslide in September 2025, the production ramp-up process is proceeding more slowly than we previously estimated. This year, production capacity is still around 65 percent,” he stated during a hearing with House of Representatives Commission XII on Tuesday, 14 July 2026.
Additionally, the ore production target for this year is an average of 124,000 tonnes per day, down from the previous year’s realisation of around 139,000 tonnes per day. The decrease was triggered by the halt in production at the Deep Mill Level Zone (DMLZ) mine following the landslide.
PTFI is targeting this year’s production to reach approximately 800 million pounds of copper and 700,000 ounces of gold, equivalent to about 21 tonnes of gold. As mining operations recover, Freeport estimates its contribution to the state will increase again starting in 2027.
State revenue is projected to reach US$4.7 billion, comprising US$1.9 billion in taxes, US$1.9 billion in dividends, and US$800 million in PNBP. Tony said state revenue will increase further after mine production returns to normal and downstream facilities operate at full capacity.
In 2028, state revenue is projected to reach US$7.1 billion, consisting of US$3.1 billion in taxes, US$2.7 billion in dividends, and US$1.3 billion in PNBP. This value is expected to be maintained in 2029, although the composition will change to US$3.3 billion in taxes, US$2.6 billion in dividends, and US$1.3 billion in PNBP.
Meanwhile, in 2030, Freeport’s contribution is expected to peak at US$8 billion, derived from US$3.2 billion in taxes, US$3.5 billion in dividends, and US$1.3 billion in PNBP. “Once production capacity is full, state revenue will exceed US$7 billion per year, or around Rp120 trillion per year,” Tony said.