Timika, Papua (ANTARA News) - PT Freeport Indonesia has paid Rp5.8 trillion in taxes and other financial obligations in the first quarter of 2011 (January to March) to the Indonesian government, the company says in a statement received here on Monday.

The contributions include US$346 million in corporate income tax, US$165 million in employees` income tax, regional tax and other kinds of tax as well US$51 million in royalty and US$117 million in dividends for government.

"The value of the three-monthly payment fluctuates according to the price of commodities, rates of sales and production," it says.

Total financial obligations that the company has paid from 1992 to Match 2011 to the government, based upon the working contract of 1991, reach US$21.1 billion.

They consist of corporate tax income totaling US$7.3 billion, the employees` income tax, regional tax and other kinds of tax totaling US$2.3 billion and dividends reaching US$1.2 billion.

PT Freeport Indonesia also indirectly contributes in the form of investment in infrastructure sector in Papua such as city, airport, seaport, roads, bridges, waste dumps and modern communication system.

Social infrastructure that has been provided by the company include school, dormitory, hospital, health clinic, house of prayers, recreation center and small and medium business development facility.

"Freeport Indonesia has invested about US$7.2 billion in various projects," it says in the statement.

Based on a study by the Institute of Social and Economic Research of the Faculty of Economics of state University of Indonesia (LPEM-UI) in 2010, Freeport Indonesia`s contribution to the regional Gross Domestic Product (GDP) of Papua`s District of Mimika reaches 96 percent while for Papua province up to 68 percent meanwhile the company`s contribution to Indonesia`s GDP reaches 1.59 percent.

Until 2010 total number of employees of PT Freeport Indonesia is recorded at more than 22,000, 30 percent of them local Papuans and less than two percent are foreigners.

To increased the number of skilled workers especially from local Papuans in 2003 PT Freeport Indonesia established the Mining Institute of Nemangkawi (IPN) as a training center for workers.

Until now it has produced more than 1,500 trainees to work for PT Freeport Indonesia and contractor companies.

In carrying out its mining operations PT Freeport Indonesia always puts forward positive and open relations with the community, the government and other stake holders to support benefit continuity.

In 2010 PT Freeport Indonesia allocated more than US$185.5 million in various sustainable development programs.

Of the total US$72.9 million was for environmental management, US$112.6 million for social development programs including US$69.7 million through partnership funds for community development programs.
(T.E015/H-YH/HAJM/F001)

Editor: Priyambodo RH
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