Feb 27th, 2007, in Business & Economy, by

Freeport contributed over $1.5 billion in revenues to the state in 2006.

Freeport-McMoRan Copper and Gold Inc’s mining operations in Papua contributed 14 trillion rupiah, or about 1.6 billion dollars, to state coffers in 2006, whether via corporate, employee income, and other taxes ($1.3 billion), or by royalties and dividends ($300 million) to the government.

Location of Freeport Mine

In total, since the company started its gold and copper mining operations in 1992 it has paid $5.1 billion to the Indonesian government, with taxes accounting for $4.1 billion of this and the remainder coming from royalties and dividends.

Freeport Indonesia also said that it had invested $5 billion in company infrastructure projects and another $500 million in social facilities. It had also spent $4.3 billion on purchasing goods and services within Indonesia.

Location of Freeport Mine
Location of Freeport Mine.

9,000 people are currently employed by Freeport with 27% of these, 2400 people, being indigenous Papuans, the company claims. Another 10,700 jobs were created indirectly in 2006, such as for contract workers or employees at partner firms. kompas

16 Comments on “Freeport”

  1. Bas says:

    Someone know how much Total paid?

  2. 1ndra says:

    Do they calculate the nature deforming and money needed to repair it?

  3. Mubarak says:

    Does someone also calculate how much Freeport get? Much much larger of course.

  4. Andrew says:

    Have anyone imagine how much of that amount would have been embezzled had this been a local private or government company like Pertamina?

    Much much much larger of course.

  5. Hassan says:

    The govt received less than 10% of Freeport profit from tax and royalty, and that amounts to $1.5 billion. So gross calculation will say that Freeport gets more than $150 billion per year. That’s the amount that Freeport ‘loots’ from our country per year, which our stupid govt willingly pays. In 25 years, $3.75 trillion will flow from poor Indonesia to the very rich United States! Go figure.

    I just love capitalism very much!

    Hooray Star Spangled Banner! Please use those money to kill more people all over the world!


    Sorry, I should say that Freeport gets more than $15 billion per year, and will have more than $375 billion in 25 years time. Plus we need to remember that Freeport had been mining our gold and copper for decades. Mathematic mistake, I forgot about the dot in $1.5 billion! 😉

    That was the reported income, I don’t know about the ‘unreported’ income. My friend who worked at Freeport tell me that sometimes they report gold as copper. Greedy capitalism!

  6. Robert says:


    Hooray Star Spangled Banner! Please use those money to kill more people all over the world!

    The money isn’t for the US Government, it will go into the pockets of the Freeport management and shareholders.

    That’s the amount that Freeport ‘loots’ from our country per year, which our stupid govt willingly pays

    Freeport doesn’t loot anything by itself. The Indonesian Government is allowing this looting. It is really strange when you look at this from an historical point of view.
    The Indonesians fought the Dutch in 1945-49, to end a 350-year period of colonization. The Dutch left and what does the Indonesian Government do? They invite new colonizers! But now it is the Americans who get a very big slice of the Indonesian pie.
    Of course the Americans aren’t as stupid as the Dutch, they don’t go in themselves, but they let the Indonesians do the job by paying the Government and Army.
    Like locusts on a grain-field who eat all the grain, companies like Freeport eat bare the Indonesian soil while the Indonesian people just watch this looting taking place.

  7. 1ndra says:

    A poor country who lets its wealth be exported.

  8. Hassan says:

    If we demonstrate the govt will crush it like the way they handle the last student riot in Jayapura. Nice country.

  9. Cukurungan says:


    Are you blind? The last time students rioted or demonstrated our security was a bit smart, they didn’t provide guns to the police riots, so at that time most victims were not students but un-armed security personnel. Sorry, at that time, we knew exactly what the expected outcome of the foreign scenario behind the students’ demonstration. Massive death to demonstrators so the Papuan issue can be internationalized if possible to PBB forums but it failed. So where was your voice of concern to the security personnel victims. lol

  10. Sputjam says:

    In capitalism, the amount of money obtained through mining will in most cases, will not return to its source.
    Freeport is not the only mining company in Indonesia.
    Why ignore those coal mines in kalimantan who reaped bountiful harvest due to boom in coal prices, and timber. And those doing the shipping.
    Let us face it. Most of the money obtained from Indonesian resources are now parked in financial centres around the world. In the case of Indonesia, the most probable centre will be Singapore and previously, Hong Kong.
    When a particular commodity is exported, in most probability, the invoice may indicate payment to an offshore account. Same goes to shipping and palm oil.
    Now is it any wonder why singaoore is so much richer than indoneisa although they do not have any resources.
    Best way to distribute the profit to the locals is for local government to tax the commodity at source for distribution among local populace. But over taxing will cause no investment in the first place. Therefore a careful balancing act must be put in place.
    Presently, all tax revenues goes to jakarta, who then ignore provincial financial requirments. That is why,unlike Malaysia, there is really only one very large city in Indonesia, due to centralisation of its government in jakarta, and the tax revenue not evenly disributed to rural areas. Same with Thailand.

  11. Dimp says:

    Hi Sputjam,

    That is because Freeport is an American company, which represents the devil and all that is evil. While the coal miners and illegal loggers in Borneo are done by Indonesians who are holy and sacred.

  12. Oigal says:


    It pays to just a tiny bit of research before launching into a tirade and putting absolute howlers into print.

    The govt received less than 10% of Freeport profit from tax and royalty.

    Wrong, for a start Indonesia owns 9.36% of Freeport and thus gets both the tax, royalities, Net and Gross Profit on that 9.36 per cent plus tax, royalties, etc on the other 90% and it’s a lot more than 10% (that’s just a silly figure and I am sure you know better than that).

    Their profit was 30% which whilst a little on the high side due to good resource prices in 2006, is still well within the bounds of reasonable considering the investment required (not to mention the high risk on any investment in Indonesia).

    Now if Indonesia wants/needs foreign investment is another debate altogether anti US/Foreign company rants based on emotion and incorrect information are just that, rants

    Personally I would be more worried about Domestic Companies not meeting their tax and CSR obligations and if Papua has generated so much money for Indonesia, why is Papua in the state it is now.

    For some basic facts:

    Income Statement

    (2006) Annual

    Total Revenue 5,790.50
    Gross Profit 3,265.64
    Operating Income 2,836.70
    Net Income 1,456.51

    So I am not sure why Kompas got its facts from but you could try

    Do read it, it’s enlightening.

  13. Sputjam says:

    Taxes collected from freeport goes to jakarta and never came back. Papuans have the right to their own language and culture and taxes collected from their territory.

  14. Saeed A says:

    Free port ha ha! What can Indonesian government do, if they protested about the subject, US authorities will make sure there are framed for human right violation, terrorism etc.
    The biggest problem around is Australia they are the ones who give intelligence. If these parts of the world really want to independent get rid of Australia that way you can get rid of US. Nevertheless what Japan is doing same? We need EU to do things. At least they have guidelines US is nation of fools destroying the only place we have to live.

  15. Janma says:

    If these parts of the world really want to independent get rid of Australia that way you can get rid of US.

    how do you propose to “get rid of Australia”?
    why not get rid of human rights abuses and terroism instead? then there would be nothing to report.
    governments never play fair, not western, not asian, not islamic… politics is about taking advantage of your enemies weaknesses. You can’t just ‘get rid of Australia’ of the US, but you need to learn how to deal with them and not be so minder in the international political arena. Indonesia doesn’t hold her cards close to her chest, rather they are on the table for all to see and although she has a good hand, has no idea how to play them.

  16. Dragonwall says:

    I guess many also failed to understand mining as a whole. In a mining concession there numeroud minerals besides gold, like copper, silver, etc, etc which were not even accounted for.

    Besides the gold figure could be higher by 50 percent at least those other elements could amount to a big slice of their income. Not forgetting only not long ago logam Mulia was accepted by world standard. Before that no one accepts Indonesian gold by the Big 5 in London Metal Exchange.

    It also looks obvious no one will ever get to know the exact figures from them.

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