What is Freeport's Contribution to Indonesia?

PT Freeport Indonesia (PTFI)'s contribution to the Indonesian government in 2015 only reached US$368 million (approximately Rp 4.9 trillion). According to PTFI's 2016 financial contribution fact sheet, this amount comprised royalties of US$122 million (approximately Rp 1.6 trillion) and other taxes and levies of US$246 million (approximately Rp 3.3 trillion). This contribution has been steadily declining since 2010. Furthermore, dividend income has been nonexistent since 2012.

As is known, Freeport plans to sue the Indonesian government in international arbitration. The reason is that the US mining company believes the government has violated the contract following the issuance of Government Regulation Number 1 of 2017 on January 12th of that year.

To date, Freeport has not fulfilled its obligations, such as building a smelter for its mining products, the 51% divestment of its shares to Indonesian parties, and the change of its Contract of Work (KK) status to a Special Mining Business License (IUPK). These obligations were originally due in 2014, with the government granting an extension until January 2017. However, Freeport has yet to fulfill them.