Freeport's Deposit To The State Drops To IDR 43.82 Trillion In 2023

Vice President Director of PT Freeport Indonesia Jenpino Ngabdi. (Photo: YouTube Screenshot)

State revenue deposits from PT Freeport Indonesia (PTFI) in 2023 were recorded at US$2.7 billion or Rp43.82 trillion (assuming an exchange rate of Rp16,230 per US dollar) in the form of taxes, dividends, and PNBP.

This amount decreased from the realization in 2022 of US$3.6 billion or Rp62.02 trillion.

Vice President Director of PT Freeport Indonesia Jenpino Ngabdi admitted that this year's deposit to the state had indeed decreased compared to last year.

"This number is indeed smaller than the previous year. Due to the decrease in the number of dividends received by MIND ID as a shareholder of PTFI which resulted in the decline in PTFI's cash," he said in a hearing with Commission VI of the DPR RI at the DPR RI Complex, Senayan, Central Jakarta, Monday, June 6.

Furthermore, Jenpino revealed, the decline was due to the implementation of policies related to Export Result Foreign Exchange (DHE).

The regulation is contained in Government Regulation (PP) Number 36 of 2023 concerning DHE from Business Activities, Management, and/or Natural Resource Management (SDA).

"According to the regulation, 30 percent of the export proceeds must be placed during the month at the domestic bank and there is also an exit fee imposed on PTFI's consetrate exports for July to December 2023," he said.

For 2024, continued Jenpino, it is estimated that state revenue from PTFI will be USD 5.6 billion.

However, provided that Freeport has obtained a copper export permit until the end of 2024.

"For the RKAB (work plan and budget) in 2024, state revenue is estimated at 2.9 billion US dollars without export permits. Meanwhile, if PTFI gets an export permit, state revenues reach 5.6 billion US dollars or an increase of 2.7 billion US dollars," said Jenpino.