Freeport Workers Contribute the Most Taxes in Mimika

17 June 2022


A total number of 81.187 PT Freeport Indonesia (PTFI) workers represent the largest contributors to Income Tax, or Pajak Penghasilan (Pph), in Timika, Papua. Acting Head of the KPP Pratama Timika Office, Sapi’ih explained that the achievement target for 2022 in Timika is set at Rp.3.7 trillion.

As of May 2022, tax revenues comprising Income Tax (PPh), Value Added Tax (VAT), or Pajak Penjualan (PPn), and or Sales tax on Luxury Goods or, Pajak Penjualan atas Barang Mewah (PPnBM) and other taxes which have been realized are IDR1.122 trillion, or equal to 32.88 percent. This realization represents a positive increase at the same time in 2021, namely Rp.1.011 trillion, or an increase of 10.99 percent.

Sapi’ih mentioned that based on the type of the tax, the revenue of KPP Pratama Mimika, until the month of May, in terms of the largest contribution was non-oil and gas income tax realizing tax revenue totaling IDR1.009.233.480. “All of that represents personal taxes of 81.187 taxpayers,” stated Sapi’ih in a press release at KPPN Timika, Friday (6/17).

A release on Anggaran Pendapatan dan Belanja Negara (APBN), or State Budget by the Representative Office of the Ministry of Finance in Timika: In the second order/place is domestic BBM (Bahan Bakar Minyak), or fuel with the realization of IDR109.804.973.330 in revenues, thereafter in last place is other taxes with the realization of IDR2.624.424.000 in tax revenues.

Sapi’h stated that PPh (Income Tax) Article 21 is exclusively for PT Freeport; many (of its) vendors or contractors recruit workers/manpower. “The revenue we receive is dominated by PPh 21, which represents 81.04 percent of the total revenues/earnings. Due to the many Freeport employees,” he added.

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