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🇮🇩 Indonesia /Economy & Trade

State revenue from Freeport Indonesia to drop to US$2.6bn in 2026

From Tempo · () Indonesian

Translated from Indonesian, summarized and contextualized by DistantNews.

At a glance

News Named sources Ongoing story
  • PT Freeport Indonesia projects a 39.5% drop in state revenue for 2026, falling to approximately US$2.6 billion.
  • The decline is attributed to incomplete recovery of mining production following a 2025 landslide at the Grasberg mine.
  • State revenue is expected to rebound starting in 2027, reaching US$4.7 billion, and further increase in subsequent years.

PT Freeport Indonesia (PTFI) anticipates a significant 39.5 percent decrease in state revenue for 2026, projecting it to fall to around US$2.6 billion. This marks a substantial drop from the US$4.3 billion in state revenue generated in 2025.

PTFI President Director Tony Wenas explained that the projected 2026 revenue will consist of US$1 billion in taxes, US$1.1 billion in dividends to state mining holding MIND ID, and US$500 million in non-tax state revenue, including royalties. Wenas attributed the decline to the ongoing, slower-than-expected recovery of mining production after a landslide at the Grasberg mine in September 2025. He noted that upstream production capacity in 2026 is estimated to reach only about 65 percent of its full potential.

Due to the landslide in September 2025, the production ramp-up process is slower than we previously estimated. This year, the production capacity is still around 65 percent.

— Tony WenasPTFI President Director Tony Wenas explaining the impact of the Grasberg mine landslide on production capacity during a hearing with House of Representatives Commission XII.

The targeted average ore production for the current year is set at 124,000 tons per day, a decrease from the previous year's realization of approximately 139,000 tons per day. This reduction was directly triggered by the suspension of production at the Deep Mill Level Zone (DMLZ) mine following the landslide. For the current year, Freeport aims to produce around 800 million pounds of copper and 700,000 ounces of gold.

However, PTFI forecasts a rebound in state revenue starting in 2027, with an estimated US$4.7 billion. This includes US$1.9 billion in taxes, US$1.9 billion in dividends, and US$800 million in non-tax revenue. The company expects revenue to continue increasing as mining operations fully recover and downstream facilities operate at capacity, projecting US$7.1 billion in 2028 and peaking at US$8 billion in 2030. Wenas stated that once production capacity is fully restored, state revenue is expected to exceed US$7 billion annually.

Once production capacity is fully restored, state revenue will exceed US$7 billion per year, or about Rp120 trillion annually.

— Tony WenasPTFI President Director Tony Wenas projecting future state revenue once mining operations return to normal.
DistantNews Editorial

Originally published by Tempo in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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