Jakarta. Mining giant Freeport Indonesia (PTFI) has long been a major contributor to the Indonesian economy, including at the regional level in Papua or specifically Mimika.

PTFI's contributions encompass significant direct and indirect benefits, playing a vital role in national gross domestic product (GDP), regional development, and job creation.

For over five decades, PTFI's financial contributions have reached impressive levels.

Between 1992 and 2024, PTFI had contributed approximately $34 billion to the state, many of those contributions taking the form of taxes, royalties, dividends, duties, and other levies. This makes PTFI one of Indonesia's largest taxpayers. This also includes a vital allocation of foreign exchange, with 65 percent of the total direct financial benefits distributed during that period going to Indonesia.

PTFI also makes Indonesia prosper via indirect benefits through investment, community development, regional development, and domestic purchases. These indirect benefits totaled $70.5 billion over the same period, demonstrating a commitment to sustained investment in the country.

Strong Impact on the Regional and National Economy

PTFI's operational activities have a concentrated economic impact, particularly in the Papua region. The company's operations contribute a massive 79.27 percent ​​to the gross regional domestic product (GRDP) of Mimika Regency and 33 percent to the GRDP of Papua Province. This makes PTFI a key economic driver and financial backbone for the region.

PTFI contributes 0.78 percent to Indonesia's total GDP. In fact, its financial contribution to the central government is equivalent to 1.64 percent of the total transfer funds allocated across Indonesia.

Key Job Maker

2019 data showed that PTFI's activities had created 208,000 jobs across the archipelago. Of this number, 64,000 (31 percent) are jobs in Papua, while 144,000 (69 percent) are outside the region. 

Gold Production Projections and Potential State Revenue

Earlier this week, PTFI President Director Tony Wenas presented the company's 2025-2029 gold projections to the country's lawmakers. This projection aligns with the restoration plan for the Grasberg mine, which will fully resume operation in 2027.

"The company has entered into a cooperation agreement with Antam to supply up to 30 tons of gold per year, with the potential for more depending on demand," Tony said.

With this massive production projection and the assumption of high commodity prices, PTFI estimates that state revenues from 2028 to 2029 could potentially exceed $6 billion or nearly Rp 100 trillion per year.

PTFI  operates not only as a mining entity but a strategic economic pillar. It provides a significant source of fiscal revenue, on top of being a major job maker for the people in Indonesia and Papua.