Indonesia Mining Industry

[Indos]

Freeport Projects Payments to Indonesian Government to Reach Rp40 Trillion​

Ilyas Fadilah - detikFinance
Selasa, 15 Sep 2026 22:25 WIB





Jakarta – PT Freeport Indonesia (PTFI) projects that its payments to the Indonesian government could reach US$2.6 billion, or around Rp40 trillion, this year. The payments comprise taxes, dividends, Non-Tax State Revenue (PNBP), and other levies.

PTFI President Director Tony Wenas said the projection assumes a copper price of US$4.75 per pound and a gold price of US$4,000 per ounce. Meanwhile, current copper prices were said to be around US$6.50 per pound, while gold was trading at approximately US$4,500 per ounce.

“As I showed earlier, for the 2026 projection, planned government revenue is US$2.6 billion, or around Rp40 trillion, consisting of taxes, dividends, and other PNBP. This is based on an assumed copper price of US$4.75 per pound and gold at US$4,000 per ounce,” Tony said during a meeting with Commission XII of the House of Representatives (DPR) at the DPR Building in Jakarta on Tuesday (September 15, 2026).

Government revenue from Freeport is projected to increase significantly to US$4.6 billion in 2027. The increase is expected to coincide with higher production as mining activities at the Grasberg Block Cave (GBC) recover.

Freeport’s gold production is projected to increase from around 700,000 ounces, or 21 tons, in 2026 to 1 million ounces, or approximately 31 tons, in 2027. Meanwhile, copper production is expected to rise from 800 million pounds to 1.3 billion pounds over the same period.

“If we compare this with the plan for 2027, there is a significant increase in government revenue to US$4.6 billion. This will be in line with the increase in production that I explained on the previous slide,” Tony said.

Government revenue generated from Freeport’s operations is expected to surge again beginning in 2028. Tony estimated that it could reach US$8 billion, or more than Rp120 trillion annually, in 2028, 2029, and subsequent years.

“In 2028, 2029, and beyond, government revenue is estimated to reach US$8 billion, or more than Rp120 trillion per year, in the form of taxes, PNBP, dividends, and other levies,” Tony said.

Freeport Proyeksi Setoran ke Negara Tembus Rp 40 Triliun

PT Freeport Indonesia (PTFI) memproyeksikan setoran ke negara tahun ini bisa mencapai US$ 2,6 miliar atau sekitar Rp 40 triliun.

finance.detik.com

 

[Indos]

Freeport Develops New Mine, Investment Could Reach Rp72 Trillion (US$4.04 Billion)​

Firda Dwi Muliawati, CNBC Indonesia
18 August 2026



Mimika, CNBC Indonesia – PT Freeport Indonesia (PTFI) is developing a new underground mining block, Kucing Liar, with total investment in the project projected to reach Rp72 trillion (approximately US$4.04 billion).

PTFI President Director Tony Wenas explained that development work on the new mining area is continuing, in line with the company’s long-term operational targets.

Tony emphasized that the major investment in the Kucing Liar Block is part of the company’s long-term sustainability program in Indonesia.

“The development of the Kucing Liar underground mine, which will become one of the company’s main sources of production in the future, continues to progress. Investment in this underground mine has already reached Rp25 trillion (approximately US$1.40 billion) and will eventually total Rp72 trillion (approximately US$4.04 billion),” he said during a ceremony commemorating Indonesia’s 81st Independence Day in Tembagapura, Mimika Regency, Central Papua, on Monday (August 17, 2026).

The Kucing Liar Block is targeted to enter the production phase in 2029, with projected production capacity of 130,000 tons of ore per day. The mine is designed to support the company’s overall production capacity so that it can maintain its target of 240,000 tons of ore per day.

“This mine is projected to produce more than 7 billion pounds of copper and 6 million ounces of gold over its operating life. This investment demonstrates that, even during a period of recovery, Freeport Indonesia continues to move forward,” he added.

The Kucing Liar Block is considered important for offsetting the projected natural decline in production from the Grasberg Block Cave (GBC) mine in the future.

If the company also secures certainty over an extension of its Special Mining Business Permit (IUPK) beyond 2041, it plans to conduct further exploration to identify potential new reserves beyond the existing mining blocks.

“This will provide crucial support because GBC will eventually become depleted and its production will decline, allowing us to maintain stable production at around 240,000 tons of ore per day,” he said.

According to Freeport-McMoRan’s (FCX) first-half 2026 report, as of June 30, 2026, PTFI had invested approximately US$1.4 billion, or around Rp24.9 trillion, in developing the Kucing Liar mining project.

PTFI began developing the new underground mine, located in the Grasberg mineral district in Central Papua, in 2022. The mine was initially targeted to begin operations in 2028, but the schedule was pushed back to 2029 following a wet-material landslide at the Grasberg Block Cave (GBC) mine in September 2025.

“Since 2022, PTFI has been carrying out long-term mine development activities at the Kucing Liar deposit, located in the Grasberg mineral district,” Freeport-McMoRan wrote in its first-half 2026 performance report.

According to the FCX report, production from the Kucing Liar mine is expected to begin gradually ramping up around 2030, eventually reaching its designed capacity of approximately 130,000 metric tons of ore per day.

Once fully operational, Kucing Liar is expected to produce an average of 750 million pounds of copper and approximately 735,000 ounces of gold per year. The project is considered one of the company’s key strategies for maintaining the long-term sustainability of production in the Grasberg mining district.

USD conversions for Rp25 trillion and Rp72 trillion are approximate and use an exchange rate of about Rp17,825/US$1. The article’s Rp24.9 trillion/US$1.4 billion figure is retained as originally reported.

Freeport Kembangkan Tambang Baru, Investasinya Bisa Capai Rp72 Triliun

PT Freeport Indonesia tengah mengembangan tambang baru dan diperkirakan akan menelan investasi hingga Rp 72 triliun.

www.cnbcindonesia.com

 

[Indos]

Indonesia Breaks Ground on Integrated Copper, Gold Downstream Project in E. Java​

Anis Firmansah
April 29, 2026

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Groundbreaking ceremony for the integrated copper and gold downstream project at the JIIPE Special Economic Zone in Gresik, East Java, on April 29, 2026. State-owned mining holding MIND ID launched the project at the Java Integrated Industrial and Ports Estate (JIIPE). (Beritasatu/Anis Firmansah)


Gresik, East Java. Indonesia has begun construction of an integrated copper and gold downstream project in East Java, as Southeast Asia's largest economy pushes to process more of its mineral resources domestically and strengthen strategic industries.

State-owned mining holding MIND ID on Wednesday launched the project at the Java Integrated Industrial and Ports Estate (JIIPE) special economic zone in Gresik. The development is part of a broader rollout of 13 downstream projects under the government’s second-phase industrialization program.

The facility will process copper concentrate from gold miner Freeport Indonesia into higher-value products, including copper cathodes, precious metals, and components used in ammunition and defense systems.

Under the plan, copper cathodes produced at Freeport’s Gresik smelter will be further processed into brass mill products and brass cups by state-owned defense manufacturer Pindad, part of the DEFEND ID holding. The facility is designed to produce up to 10,000 tons annually.

Meanwhile, anode slime generated from the smelting process will be refined by state-owned gold miner Aneka Tambang, or Antam, into gold bullion. The precious metals refinery is projected to produce up to 30 tons of gold per year, equivalent to around 5 million retail units.

Tedy Badrujaman, director of downstream strategy and mineral ecosystem at MIND ID, said the project reflects Indonesia’s broader ambition to move up the value chain.

“This is a milestone that underscores Indonesia’s commitment to becoming a sovereign industrial nation,” Tedy said. “Downstream industry is not just about exporting raw materials but about creating high-value products domestically.”

The initiative is expected to strengthen the country’s industrial base from upstream processing to finished products, particularly in strategic sectors such as defense manufacturing.

The project is also seen as a major job creator. MIND ID estimates the copper downstream segment could employ up to 7,000 workers, while the gold refining facility is expected to add around 500 jobs.

Local authorities have voiced support for the development, citing its potential to boost regional economic growth and attract further investment.

East Java Vice Governor Emil Dardak said the JIIPE special economic zone is being positioned as a competitive industrial hub capable of drawing global players.

“We want JIIPE to have strong advantages, supported by infrastructure and a complete industrial ecosystem,” Emil said. “The presence of Freeport’s smelter has already created important raw materials like cathodes and anodes, which in turn attract downstream industries such as Pindad and Antam.”

The groundbreaking ceremony in Gresik was part of a nationwide launch led virtually by President Prabowo Subianto from Central Java.

Indonesia has made downstream industrialization a cornerstone of its economic policy, particularly in the mining sector, where export restrictions on raw materials have encouraged investment in smelting and processing facilities. By integrating copper and gold processing within a single industrial zone, the government aims to maximize value creation, reduce reliance on raw exports, and build a more resilient manufacturing base tied to its natural resources.

Indonesia Breaks Ground on Integrated Copper, Gold Downstream Project in E. Java

Indonesia launched a copper-gold processing hub in Gresik to boost value-added output, cut raw exports, and strengthen its industrial base.

jakartaglobe.id

 

[Indos]

Miners are now industrializing as well

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