Innovation & Technology

Freeport-McMoRan’s Economic Impacts to Indonesia and Enterprise Development

Dec 15, 2015 10:05 AM ET
Campaign: Freeport-McMoRan: Annual Report on Sustainability

December 15, 2015 /3BL Media/ - PT Freeport Indonesia, a Freeport-McMoRan company, commissions the University of Indonesia’s Institute of Economics and Social Research to conduct economic impact assessment of PT Freeport Indonesia’s operations. The most recent study, conducted in 2012, measured PT Freeport Indonesia’s economic impact on a local, regional, and national level from 2006 to 2011. The study revealed that PT Freeport Indonesia contributed to up to 94.7 percent of the gross domestic product of the Mimika Regency, 45.4 percent of Papua Province, and 0.8 percent of Indonesia. The prior study, conducted in 2009, concluded that the multiplier effect of PTFI’s workforce created 227,000 direct and indirect work opportunities, including 128,000 direct and indirect work opportunities in Papua alone.

PT Freeport Indonesia has created a number of entrepreneur programs for inhabitants of the area who don’t work directly for the company.

  • PT Freeport Indonesia has implemented a Micro, Small, and Medium Enterprise Development Program which provides coaching and mentoring to potential Papuan entrepreneurs. In 2014, PT Freeport Indonesia supported 165 entrepreneurs who hired 1,625 local employees and generated a total revenue of $13.1 million, a 52 percent increase from 2013. Fifty-five percent of these businesses provided services and goods to PT Freeport Indonesia.

  • PT Freeport Indonesia implements a Highland Agricultural Development program to stimulate economic development and support livelihoods in Highland villages. One component of this program is the introduction of coffee as a cash crop to 114 farmers cultivating a total of 35.7 hectares in four villages.

  • PT Freeport Indonesia supports an animal husbandry farm operated by a local non-profit organization. The farm employs 444 employees and produces eggs, chickens, and pigs for the local market.

For much more information about entrepreneur and employment programs near the PT Freeport Indonesia operations, see http://www.fcx.com/sd/community/econ_indo.htm

Visit the 2014 Working Toward Sustainable Development Report for more information on all of their social, economic and environmental efforts.