Sri Mulyani Urges Freeport to Boost Productivity during Papua Mine Visit

BTV
December 6, 2022 | 8:46 pm
SHARE
Finance Minister Sri Mulyani Indrawati, center, visits Freeport Indonesia highland mine in Tembagapura, Papua, on December 4, 2022. (B-Universe photo/Stefani Ginting)
Finance Minister Sri Mulyani Indrawati, center, visits Freeport Indonesia highland mine in Tembagapura, Papua, on December 4, 2022. (B-Universe photo/Stefani Ginting)

Tembagapura, Papua. Finance Minister Sri Mulyani Indrawati visited Freeport Indonesia’s underground mine in the Papua’s highland area of Tembagapura on Sunday to see firsthand how “the country’s valuable asset” operates.

She urged Freeport to increase productivity now after the company employs the underground mining method while managing risk proactively and performing the duty to protect the environment.

Freeport needs to increase the production of silver, gold, and copper after moving to underground mining activities “which offer different challenges from mining above the surface”, Sri Mulyani said.

The Indonesian government has acquired a 51 percent stake in Freeport Indonesia since 2018 and issued a special mining license, locally abbreviated as IUPK, to allow the company to resume mining operations under certain requirements.

Advertisement

“Since the negotiation of the IUPK in 2018, Freeport Indonesia has made significant contributions in the forms of dividends, royalties, and tax payment,” Sri Mulyani told BTV news broadcaster at the mining site.

“It is now an asset to the country so Freeport must bring benefits to the Indonesian people, to the people in Papua, and certainly establish a firm foothold as a corporation,” she added.

According to the government, Freeport Indonesia contributed $7.5 billion in state revenue last year, while spurring the GDP growth in the local district of Mimika.

President Joko Widodo said in August that Freeport’s contribution to the provincial GDP growth of Papua accounts for 34 percent.

Read More:

Under the IUPK, Freeport Indonesia is required to build and operate its own smelter, which is currently under construction in the East Java town of Gresik.

The smelter is set to become operational in May 2024 and is estimated to give significant added value to its exports.

“[The smelter] will certainly strengthen both the Indonesian economy and Freeport Indonesia,” Sri Mulyani said. 

“I hope that as a highly valuable mining center, Freeport Indonesia will execute the working contract according to its mining license and the good governance principles while incorporating work safety for all communities and workers here and empowering the people of Papua.”

Freeport Indonesia Chief Executive Officer Tony Wenas said the 2018 agreement clearly outlined the company's operating foundations, including fiscal incentives from the government, mining periods, and taxes it has to pay.

“What we need to do now is to continue production in safe and sustainable ways for the biggest benefit of the country,” Tony said.

BTV reporter Stefani Ginting contributed to this story.

Tags: Keywords:
SHARE

Related Articles


Business May 20, 2025 | 3:26 pm

Indonesia’s State Revenue Falls 12% in Jan–Apr, Deficit Expected Ahead

Tax revenue totaled Rp 657 trillion, a decline of 8.7 percent compared to the same period in 2024.
Business Apr 25, 2025 | 3:26 pm

Sri Mulyani Warns of Major Shift in Global Trade Order Amid US Tariff Hikes

Sri Mulyani noted that Indonesia’s prompt decision to engage with the US placed it in a stronger position than other countries.
Business Apr 8, 2025 | 5:31 pm

Indonesian Minister Says Trump's Sweeping Tariffs Defy Economic Logic

She noted that the Trump administration’s approach appears disconnected from established economic theory.
Business Mar 18, 2025 | 8:42 pm

Sri Mulyani Reassures Investors on Prudent Budget Management as Stock Market Slumps

“I am not resigning and will continue my role in safeguarding state finances,” she said.
Business Mar 17, 2025 | 5:17 pm

Prabowo Claims Freeport's Integrated Gold Refinery is the World's Largest

Constructed at a cost of approximately $630 million, the smelter began producing its first fine gold bars last month.
Business Mar 17, 2025 | 10:00 am

President Prabowo to Inaugurate Freeport’s Fine Gold Refinery in Gresik

Freeport has signed a five-year sale and purchase agreement with Antam, committing to deliver 30 tons of gold valued at $12.5 billion.
Business Mar 14, 2025 | 11:47 am

Prabowo's Aide Dismisses Rumors of Sri Mulyani's Resignation

"I have checked with the government, and there is no immediate plan for a cabinet reshuffle," said Dasco.
Business Feb 21, 2025 | 6:09 pm

Government Allows Freeport to Export Copper Concentrate Until June

A fire incident at the newly built smelter halted operations, leading to an oversupply of copper concentrate in the company’s warehouses.
Business Feb 19, 2025 | 7:10 pm

Freeport to Resume Copper Concentrate Export But It Has to Pay Higher Taxes

Minister Bahlil Lahadalia, however, does not say until when this export relaxation will last.
Business Feb 13, 2025 | 11:56 am

Freeport Indonesia Delivers First Gold Bars to Antam to Mark New Milestone

Freeport becomes Indonesia’s first fully integrated mining company, capable of refining anodes from impure metals into gold bars.

The Latest


News 6 hours ago

At Least 60 Killed in Israeli Strikes as Gaza Aid Remains Scarce

At least 60 killed in Gaza strikes as Israel allows limited aid amid global pressure and UN warnings of looming famine.
Business 6 hours ago

Benzoin Resin Touted as Next Big Commodity in Indonesia’s Downstream Strategy

Luhut Pandjaitan says benzoin resin, or kemenyan, holds untapped potential for Indonesia’s downstream strategy and rural economic growth.
Business 6 hours ago

Trump Threatens 50% Tariffs on EU, 25% on Apple iPhones Made Abroad

Trump threatens 50% tariffs on EU goods and 25% on Apple products unless iPhones are made in the US, escalating his trade war.
News 8 hours ago

Minister Shuts Down Tangerang Steel Plant Over Toxic Smoke Emissions

The facility, operated by Power Steel Mandiri in the Cikupa Industrial Complex, was found to be emitting hazardous air pollutants.
Business 9 hours ago

Shell’s Exit from Indonesia Fuel Retail Not a Sign of Energy Sector Decline, Says Minister

Energy Minister Bahlil Lahadalia says Shell’s sale of Indonesian fuel stations is a normal business move, not a worsening energy sector.
COPYRIGHT © 2025 JAKARTA GLOBE. ALL RIGHTS RESERVED