Illustration of Grasberg Mine - Mining Global

Freeport says it is ready to pay the water tax debt


Illustration of Grasberg Mine – Mining Global

Jayapura, Jubi – PT Freeport Indonesia declared its willingness to implement the result of Tax Court Decision Number Put-70853 / PPMXVB / 24/2017 dated January 18, 2017 ie paying Water Tax to the Government of Papua Province amounting to Rp5.3 trillion.

The agreement was reached in a meeting of Facilitating Payment of Surface Water Tax (PAP) of Tax Court Result between the Provincial Government of Papua and PT Freeport Indonesia, which was facilitated by the Directorate General of MoHA Regional Finance Development on Friday (4/8/2017) in Jakarta.

“The most important point formulated as a result of this meeting is that in the near future, Freeport must meet with the Governor of Papua to discuss payment in stages, as long as it is not contrary to the legislation and Court Decisions,” said Head of the Papua Regional Revenue Management Agency, Gerson Jitmau in a press release in Jayapura, Sunday (6/8/2017).

The first point of the three contents of the agreement stipulates that Freeport is obliged to pay the Surface Water Surface Tax (PAP) from 2011 to July 2017, including administrative sanctions in the form of a 100 percent penalty of the total tax based on appeal in accordance with Law No.14 / 2002.


According to him, the Ministry of Finance and Ministry of Home Affairs has confirmed, there are no longer negotiating meetings in Jakarta because the tax court decision has been fixed with permanent legal force.

“So Freeport must immediately coordinate with the Governor of Papua to make the payment.” It’s been 50 years since it operates, so Freeport should not neglect its obligation because it is also to support the will and welfare of the people of Papua, “said Jitmau.

Meanwhile, the Chairman of Commission III of the Papua Parliament, Carolus Bolly, appreciated all parties who were quite persistent in fighting for the right of the Papuan people, approximately three years, in the case of the PAP dispute. He also hopes the PTFI receive and run the agreement together.

Previously, in February 2017, Papua Governor Lukas Enembe asked PT Freeport Indonesia to implement the Indonesian Tax Court’s decision regarding the payment of surface water taxes, but it was ignored.

PTFI’s tax lawsuit was filed by the Papua Government to collect PT Freeport’s tax-paying shortfall as submitted by the Supreme Audit Agency (BPK) in its audit results, which questioned PTFI’s tax-paying shortfall on surface water used from 2011 to 2015.

The local government then sent a letter to Freeport to immediately settle the tax shortfall, but PTFI rejected it and filed a lawsuit with the Indonesian Tax Court.

“Praise God, the lawsuit was rejected. Well now it must be resolved, “said the Governor. (*)



Editor: Zely Ariane

You might also like