The illustration of tax payment. -Jubi/IST

Freeport’s tax debt affects Papuan Regional Budget 2019


The illustration of tax payment. -Jubi/IST

Jayapura, Jubi – Papuan Primary Regional Budget (APBD) 2019 reportedly decreased to IDR 13.9 trillion from IDR 14.142 trillion last year due to Freeport’s tax debt on the water surface.

Papuan Provincial Secretary Hery Dosinaen said the tax debt affected the decline of provincial income that then droved to the decrease of the total revenue of the main provincial budget.

“Provincial revenue has decreased because we cannot meet our target due to the delayed tax payment by Freeport,” said Dosinaen in Jayapura.

However, the provincial government said they would not negotiate with the company about this late payment. Further, the governor refused Freeport to pay their tax based on goodwill but their income and profits. “This has caused the out-target payment. Even the plenary to discuss the water surface tax 2017-2018 is still running until now,” he said.


Meanwhile, the First Vice Chairman of Papua Parliament Edoardus Kaize said Papua Provincial Budget 2019 consists more than IDR 895.8 billion in local incomes, more than IDR 4.4 trillion in a balanced fund, and IDR 8.6 trillion in net revenue.

“However, the regional expenditures were more than IDR 13.8 trillion consisted of IDR 6.6 trillion of indirect expenditures, IDR 7.2 trillion of direct expenditures and IDR 50 billion of budget surplus,” said Kaize. (*)


Reporter: Alexander Loen

Editor: Pipit Maizier

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