Freeport to Face Court unless It Pays Taxes


Jayapura, Jubi – Government of Papua is going to take legal action against PT Freeport Indonesia (PTFI), the copper and gold mining unless the company pays Surface Water taxes, an official said.

“We are ready to take legal action against PT Freeport Indonesia, if it does not comply with Regulation Tax Act No. 28 of 2009 on Regional Taxes and Levies Regional, and Local Regulation of Papua,” head of Department of Revenue of Papua Ridwan Rumasukun told journalists in Jayapura, Papua on Wednesday (03/18/2015).

He said all this time Freeport Indonesia only pays Surface Water tax based on an MoU which stipulates a small rate and is not based on the law and regulation. According to the rules and regulation of Papua, PT. Freeport must pay provincial government Rp. 435 billion per year.

If PT.Freeport has objection to that, it can apply for a waiver and, if approved, has to pay 50 percent of the total owed to the government.
“Well, Freeport needs to settle the tax from 2011 until 2014 and it clearly must be based on the regulation and not on the MoU,” he said.

He added that earlier Papua Provincial Government is also working with the High Court of Papua as the State Attorney for this case, but before the government has delivered an objection letter to the PT. Freeport.
“Governor of Papua through the Second Assistant Regional Secretary of Papua, has given some inputs on this case. If they are not paying the tax, we are ready to bring to the court it,”Rumasukun added.


Director General of Regional Finance Ministry of Home Affairs Reydonnizar Moenek said, it would facilitate meetings between Provincial Government and Management of PT. Freeport Indonesia and the Ministry of Internal Affairs already has data about surface water tax. (Alexander Loen/Tina)

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