JAKARTA, Indonesia – The governor of Indonesia's easternmost province of Papua is urging Freeport to immediately pay $376 million in taxes and penalties after a court ruled against the mining giant in a water use case.
Lukas Enembe said Friday that the Tax Court ruled Jan. 17 that Freeport should pay much higher taxes on water the company drew from two Papua rivers between 2011 and 2015.
Under Indonesian law, payment is required about 30 days after receipt of the ruling. Freeport Indonesia, a unit of Phoenix, Arizona-based Freeport-McMoRan Copper & Gold Inc., is expected to appeal to the Supreme Court.
Enembe said the province was claiming taxes based on a 2011 local government decree. Freeport had argued it should pay a lower rate based on a decades old contract with Indonesia's government.