Freeport Reaches Full Mine Recovery, Eyes IDR 100 Trillion Contribution to Indonesia
Fri 21 Aug 2026, 16:34 PM
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PT Freeport Indonesia (PTFI) projects its annual contribution to the state could exceed IDR 100 trillion once mine production fully recovers. Mine operations are expected to return to 100% of normal capacity by the end of 2027.
PTFI President Director Tony Wenas explained that restoring mine operations following the wet material landslide incident in September 2025 will still take time. He stressed that production capacity is being increased gradually, with operations targeted to reach 65% of normal levels by the end of 2026.
“Next year, [our contribution to the state] will certainly be higher because in the first half of 2027 we should be able to reach 75%, and by the end of next year we are aiming for 100%. Once we reach 100%, our contribution to the state could be exceptionally large, exceeding IDR 100 trillion, possibly around IDR 120 trillion per year,” he said in Tembagapura, Central Papua, as part of CNBC Indonesia’s Mining Zone program, as quoted on Friday (August 21, 2026).
The projection of an increase in annual contributions to IDR 120 trillion, equivalent to USD 7 billion, once full production capacity is restored is based on the assumption that global copper and gold prices remain stable.
In addition to direct payments to the central government, the contribution includes revenue-sharing funds for regional governments in Central Papua province.
“In 2028, based on our current forecast, with the benchmark mineral prices we are using of USD 6 per pound for copper and USD 4,500 per ounce for gold, we could contribute more than USD 7 billion to the state,” he said.
Although production has yet to return to optimal levels, the company still projects its contribution to state coffers in 2026 at around Rp47 trillion through tax payments, dividends and royalties.
“This year, we are in recovery mode, so production is only around 65%. Even so, we will still contribute approximately Rp47 trillion to the state, according to our projections for this year,” he said.
To achieve full operational capacity, the company is continuing to accelerate the removal of wet mud material, which is currently 84% complete. The company is also making technical modifications to a number of mining equipment units to improve their reliability in supporting the planned increase in production.
“Our focus is not only on this year, but also on the long term, especially since our [operating] license has been officially extended beyond 2041,” he concluded.
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