# PT Freeport Indonesia operations in Papua

> Live situation record from CLSTR: https://clstr.news/situations/pt-freeport-indonesia-operations-in-papua
> Updated: 2026-08-23T15:44:36.000Z. Sources: 3. Developments: 3.

PT Freeport Indonesia (PTFI) is navigating operational recovery and long-term regulatory and social commitments in Papua. Following a September 2025 landslide at the Grasberg Block Cave underground mine, the company has focused on restoring production capacity, which is projected to reach full capacity by the end of 2027.

In a significant industrial milestone, PTFI’s copper cathode smelter in the Java Integrated Industrial and Port Estate (JIIPE) Special Economic Zone in Gresik, East Java, is scheduled to begin production in September 2026. This facility supports Indonesia’s mineral downstreaming policy to enhance global copper concentrate processing.

To secure its long-term presence, PTFI has applied to extend its Special Mining Business License (IUPK) beyond 2041. As part of this process, the company has proposed divesting an additional 12% stake to the state-owned PT Mineral Industri Indonesia (MIND ID), which would increase government ownership to approximately 63%.

Parallel to these developments, PTFI is expanding its social investment programs. The company has increased its planned annual investment to approximately Rp 3 trillion (US$ 150 million) through 2041. These funds target communities near its Papua operations, with over 40% of the budget dedicated to health and education. Other priorities include economic empowerment through MSME development, agricultural projects, and potential long-term infrastructure such as hospitals and universities in Central Papua.

## Timeline

### 2026-08-23: PT Freeport Indonesia launches Gresik smelter and increases social investment

PT Freeport Indonesia is launching a copper smelter in Gresik this September and plans to increase annual social and environmental investments in Papua to approximately Rp 3 trillion.

2 sources. https://clstr.news/cluster/pt-freeport-indonesia-launches-gresik-smelter-and-increases-social-investment

### 2026-08-21: PT Freeport Indonesia expands social investment in Papua

PT Freeport Indonesia is investing in Papua through educational initiatives, including the Sekolah Asrama Taruna Papua, and regional development programs focused on health, nutrition, and local economic growth.

2 sources. https://clstr.news/cluster/pt-freeport-indonesia-expands-social-investment-in-papua

### 2026-08-08: Freeport Indonesia moves to extend mining license and divest 12% stake

Freeport Indonesia seeks to extend its mining license past 2041, offering to divest 12% of its shares to the state, while copper concentrate shipments from Papua have resumed, targeting smelter production by se

2 sources. https://clstr.news/cluster/freeport-indonesia-moves-to-extend-mining-license-and-divest-12-stake

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Cite as: PT Freeport Indonesia operations in Papua. CLSTR, https://clstr.news/situations/pt-freeport-indonesia-operations-in-papua