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Kalla: Freeport's Tax Obligation under Negotiation  
Friday, 17 February, 2017 | 20:52 WIB
Kalla: Freeport's Tax Obligation under Negotiation  

TEMPO.CO, Jakarta - Vice President Jusuf Kalla said that the government and PT Freeport Indonesia are still in negotiations over the mining company's tax obligation. Kalla expressed optimism that both parties will reach an agreement soon.

"The [Freeport's] tax obligation is still being negotiated," Kalla said at the Vice Presidential Office in Jakarta on Friday, February 17, 2017.

Kalla explained that the government must consider two elements in addressing Freeport’s tax obligation issues, namely national interests and investment sustainability.

"[We need to figure out] how an investment is profitable while maintaining the national interests," Kalla added.

Earlier, Freeport requested a fixed tax scheme or nail down, while as a special mining license holder, Freeport must comply with the prevailing scheme. The scheme requires Freeport to pay taxes that could change depending on applicable regulations.

The government has also called on Freeport to release 51 percent of its shares to the state, as mandated by Government Regulation No. 1/2017 on mineral and coal mining businesses.

Kalla revealed that the central government annually earmarked at least Rp 80 trillion (US$6 billion) for Papua, while Freeport pays an annual tax of Rp 5 trillion (US$375.9 million). According to Kalla, the government expects Freeport to provide more contribution in terms of its tax obligation.


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