PT Freeport paid rp17 trillion to govt in 2007

Timika, Papua (ANTARA News) - US-based gold and copper mining company PT Freeport Indonesia (PTFI) contributed a total 1.8 billion US dollars or Rp17 trillion to the Indonesian government in 2007, the company said.

The company`s financial obligations to the Indonesian government consisted of corporate income tax, employee income tax, regional tax and other kinds of taxes totaling 1.4 billion US dollars, royallties 164 million US dollars and dividends 216 million US dollars, the company said in a statement received in Timika on Monday.

The amount contributed to the Indonesian government in 2007 was bigger than in 2006 when the figure was 1.6 billion US dollars. The increase was due to fluctuations in commodity prices and the output of the company whose mines are located in Mimika district, Papua.

In the period 2002-2007, PTFI paid the Indonesian government a total of 6.9 billion dollars in corporate income tax, employee income tax and regional tax, 5.5 billion US dollars in other taxes, 731 US dollars in royalties and 654 million US dollars in dividends.

The company obtained the right to mine gold and copper in Mimika district for another 40 years under its phase II work contract signed with the government in 1991.

Based in New Orleans, the United States, PTFI invested more than 5 billion US dollars to build Tembagapura and Kuala Kencana towns, power plants and distribution networks, a seaport, airport, roads, bridges, tunnels, a waste treatment facility, a modern communication system and other infrastrcutures.

The company had also invested more than 600 million US dollars to build schools, student dormitories, a hospital, clinics, offices, houses of worship, recreational facilities and provide assistance to small and medium enterprises in the community living around its mining area.

At present PTFI employs a total of 9.800 workers of which about 2,700 or almost 28 percent are Papua natives. In addition, about 10,800 employees of contractor, private and other companies also work in PTFI`s concession area.