Surface Water Tax Dispute Between Papua Government and PT. Freeport Indonesia


Jayapura, Jubi – PT Freeport Indonesia (PTFI) denied a statement by the Papua government that it had failed to fully abide by surface water tax laws and local regulations.

“PTFI has met its tax payment obligations, State Revenues Tax (non-tax) and other levies, including the Local Tax, based on Contract of Work,” Daisy Primayanti, Freeport Indonesia’s deputy of Corporate Communications told Jubi via email on Saturday (21/03/2015).

She further explained that based on Contract Work and tax legislation Area, PT. Freeport Indonesia agreed on regional tax payments to the Province of Papua and the Mimika Regency every 5 years, which will be due to 2016.

However, Daisy admitted this case is now being dispute between Papua government and PT. Freeport Indonesia. Last week department of Revenue of Papua expressed its readiness to take an action against the largest gold companies in the world as it is only paid the surface water tax based on the MoU, not based on the Tax Law No. 28 of 2009 on Local Taxes, Regional levies, and local regulation.

“According to them it is correct, but we’ve got a rule that refers to the law and regulation. To be noted, refusal letter on tax relief from 2011 ro 2014 in accordance with the MoU has been delivered, ” head of Department of Local Revenue, Ridwan Rumasukun said.


Surface Water Tax that must have been paid to the Provincial Government is Rp 1200 m3 or Rp 435 billion per year, but Freeport only paid Rp 10 m3 only. (Victor Mambor/Tina)

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