Freeport Claims It Remits Rp 7 Trillion Each Year for Mimika Regency

28 September 2022

PT Freeport Indonesia (PTFI) claims it remits around Rp.6 trillion-Rp.7 trillion to the Mimika Regency, Papua, every year. Freeport Indonesia President Director, Tony Wenas stated they routinely remit dividends to the Papua Provincial Administration and the Mimika Regency Administration as shareholders in the company, every year. In addition, the company also remits Dana Bagi Hasil (DBH), or Revenue Sharing Fund amounting to 6 percent of the net profit for the region. “Embedded in the Mineral and Coal Law (UU Minerba) 10 percent of company profit is for the state; 4 percent for the central government, 6 percent for the Regional Administration. PT Freeport Indonesia’s total contribution to Papua, Mimika Regency is around Rp.6 trillion-Rp.7 trillion per year,” disclosed Tony during a hearing meeting with Commission IV of Republic of Indonesia House of Representatives (DPR RI), Tuesday (27/9).

Meanwhile, Freeport Indonesia allots Rp.1.5 trillion funds per year to assist the community in the education and health sectors. In terms of the health sector, the company provides five free health facilities for residents of the Mimika Regency for treatments. “All residents of the Seven Papua Tribes are able to receive free-of-charge treatment at our facilities in five locations. One hospital, five other clinics in the mountains. This is for common colds right up to major surgery,” explained Tony. Furthermore, Freeport also manages schools. One of which is the Taruna Papua Boarding School. “It’s the first boarding school, providing nutritious food and the national vision,” stated Tony.

Previously, President Joko Widodo (Jokowi) reminded to manage Freeport Indonesia prudently, because the decline or increase of company performance will greatly impact the economy of the Mimika Regency and Papua. “I have entrusted management of Freeport Indonesia to Tony Wenas, to be prudent, and not just in terms of Freeport, but also Timika, Papua Province. Take good care of this. The moment it (Freeport) declines, so does Papua. So does Timika, be mindful (be prudent),” Jokowi said. Based on Jokowi’s records, Freeport Indonesia contributes up to 68 percent to Mimika’s Produk Domestik Regional Bruto (PDRB), or gross regional domestic product and 34 percent to Papua’s economy.

 

http://www.cnnindonesia.com/ekonomi/20220927165433-92-853342/freeport-klaim-setor-rp7-t-tiap-tahun-untuk-kabupaten-mimika

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