PT Freeport Indonesia is a world-class mining company that has been operating in Indonesia. For 56 years of operation freeport is committed to providing the best for Indonesia.
As evidence of this commitment, the company has prepared a series of unusual events and ceremonies. The highlight of the event was held in the Deep Mill Level Zone (DMLZ) underground mine at a depth of 1700 meters with a simple tumpeng cutting ceremony. In addition, the presentation of a MURI record certificate on Saturday (8/4/2023).
Progress of Smelter Development in Gresik, East Java
At the event, the President Director of PT Freeport, Tony Wenas, gave a presentation on the progress of the smelter development in Gresik, East Java. This is a form of Freeport’s commitment to support the government’s downstream program.
According to Tony, the construction of the Gresik smelter had reached 56.5% progress in February 2023. The total cost absorption amounted to USD 1.83 billion or around Rp 27 trillion. He also believed that once it is operational, the Gresik smelter will become the largest in the world.
Tony also mentioned that in 2022, President Joko Widodo visited the mining operational area and stayed in Tembagapura. President Jokowi reminded us that Freeport should be well maintained given its significant contribution to the Indonesian economy, particularly in Papua.
This shows that PT FI is highly trusted by the Indonesian government.
Freeport’s Contribution to Indonesia
PT Freeport Indonesia (PTFI) announced its contribution to the state revenue in 2022, reaching USD 3.586 billion or approximately IDR 54.15 trillion. This contribution includes dividends, taxes, and non-tax state revenue (PNBP).
Tony Wenas also revealed that the company’s target contribution for the 2023 budget year is expected to reach US$3.498 billion despite several factors that may affect it.
The metal production is predicted to remain almost the same as the previous year. But there are some costs and export taxes that are reduced to 2.5% because the smelter’s progress has exceeded 30%.
Tony Wenas also added that in the upcoming years, assuming the copper and gold prices remain stable. PT FI is targeting a state revenue contribution of USD 4.016 billion in 2024, USD 3.715 billion in 2025, and USD 4.070 billion in 2026. Even though there will be a decrease in 2025, it is due to mining activities. Moreover, the export taxes will be reduced to zero because the smelter’s progress has exceeded 50%.
This indicates that PT FI remains committed to providing the best contribution to the country and communities in its operational areas. As the world’s largest mining company, PT FI has made significant contributions to Indonesia’s economy, particularly in Papua.
With an increasing contribution, PTFI is expected to continue providing the best for Indonesia and its people.
Freeport’s Contribution to Infrastructure Development
Freeport Indonesia also contributes to the development of infrastructure in Indonesia. One example is the construction of a sports complex in Mimika which was used during the 2021 National Games (PON) in Papua.
The sports complex covers an area of 12.5 hectares with a cost of approximately Rp468 billion. In addition, Freeport also built the Papua Football Academy (PFA) in Timika to nurture world-class Indonesian football athletes.
Last year, there were 477 players who registered for the selection process from 3 cities in Papua. 30 players were selected for the U14 team and trained professionally to become future football stars of Indonesia. Tony Wenas, as the leader of Freeport, even took the time to take a photo with the PFA children at the Mimika Football Stadium, the base camp of PFA.
In conclusion, after 56 years of operation freeport is committed to providing the best for Indonesia. The company’s significant contributions to the country’s economy, especially in Papua, are undeniable.
