TEMPO.CO, Jakarta - Mining firm PT Freeport Indonesia (PTFI) projects a 39.5 percent drop in state revenue from its operations, falling to approximately US$2.6 billion in 2026. The actual state revenue contribution in 2025 had reached US$4.3 billion.
PTFI President Director Tony Wenas detailed that the 2026 state revenue will comprise US$1 billion in taxes, US$1.1 billion in dividends distributed to the government through state mining holding MIND ID, and US$500 million in non-tax state revenue (PNBP), including royalties.
Tony explained that the decline in state revenue stems from the incomplete recovery of mining production following a landslide at the Grasberg mine. Currently, the company is still conducting repairs and ensuring the safety of the entire mining area before gradually ramping up production.
According to him, upstream production capacity in 2026 is estimated to reach only about 65 percent of full capacity. "Due to the landslide in September 2025, the production ramp-up process is slower than we previously estimated. This year, the production capacity is still around 65 percent," he said during a hearing with House of Representatives (DPR) Commission XII on Tuesday, July 14, 2026.
In addition, the targeted average ore production for this year is set at 124,000 tons per day, a decline from the previous year's realization of about 139,000 tons per day. This drop was triggered by the suspension of production at the Deep Mill Level Zone (DMLZ) mine following the landslide.
PTFI aims to output around 800 million pounds of copper and 700,000 ounces of gold this year, which is equivalent to about 21 tons of gold. As mining operations recover, Freeport estimates its contribution to the state will bounce back starting in 2027.
State revenue is projected to reach US$4.7 billion in 2027, consisting of US$1.9 billion in taxes, US$1.9 billion in dividends, and US$800 million in PNBP. Tony noted that state revenue will increase even further once mining production returns to normal and downstream facilities operate at full capacity.
In 2028, state revenue is projected to hit US$7.1 billion, comprising US$3.1 billion in taxes, US$2.7 billion in dividends, and US$1.3 billion in PNBP. This valuation is expected to be sustained in 2029, though the composition will shift to US$3.3 billion in taxes, US$2.6 billion in dividends, and US$1.3 billion in PNBP.
Meanwhile, Freeport's contribution is estimated to peak in 2030 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 fully restored, state revenue will exceed US$7 billion per year, or about Rp120 trillion annually," Tony said.
Read: Freeport Targets Grasberg Mine Recovery by 2027
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