Freeport Indonesia State Revenue to Fall 39.5% to $2.6 Billion in 2026

PT Freeport Indonesia (PTFI) anticipates a significant drop in state revenue, projecting it to fall by approximately 39.5% to $2.6 billion in 2026. This decline is attributed to a slower-than-expected recovery in mine production following a landslide at Grasberg in September 2025. The company is currently focused on repairs and ensuring safety before gradually increasing production.

According to PTFI President Director Tony Wenas, the projected state revenue for 2026 includes $1 billion from taxes, $1.1 billion in dividends channeled through MIND ID, and $500 million in non-tax revenue, such as royalties. He explained that the upstream production capacity in 2026 is estimated to reach only about 65% of its full potential. "The landslide in September 2025 caused the production ramp-up process to be slower than we previously anticipated. This year, production capacity is still around 65 percent," Wenas stated during a hearing with Commission XII of the House of Representatives on Tuesday, July 14, 2026.

Production targets for the current year are set at an average of 124,000 tons per day, a decrease from the previous year's realization of about 139,000 tons per day. This reduction is primarily due to the halt in production at the Deep Mill Level Zone (DMLZ) mine after the landslide. PTFI aims to produce around 800 million pounds of copper and 700,000 ounces of gold this year, equivalent to approximately 21 tons of gold.

Freeport expects its contribution to the state to begin increasing again from 2027 as mining operations recover. State revenue is projected to reach $4.7 billion in 2027, with $1.9 billion from taxes, $1.9 billion from dividends, and $800 million from non-tax revenue. The company forecasts further increases, with state revenue potentially reaching $7.1 billion in 2028 and peaking at $8 billion in 2030, driven by full production capacity and the operation of downstream facilities. "Once production capacity is full, state revenue will exceed $7 billion per year, or around Rp 120 trillion per year," Wenas added.