What happened
Indonesia's Coordinating Minister for Economic Affairs, Airlangga Hartarto, said Freeport could invest up to $40 billion more in the country, roughly Rp 715 trillion. He made the remarks at the 14th US-Indonesia Investment Summit in Jakarta on October 6, 2026, as reported by CNBC Indonesia.
The money is tied to extending the operating contract of PT Freeport Indonesia (PTFI), the local arm of the US group that mines copper and gold in Papua. According to Airlangga, a memorandum of understanding covering the commitment has already been signed in the United States. The reports describe the investment as potential, not as a finalised extension.
What the state gets
The state's equity is an important part of the arrangement. According to the INDEF economist, the new terms include transferring an additional 12% of the company's shares to the government. If the state's holding rises to 63%, dividends paid through MIND ID, the state mining holding, and other state-owned firms would grow accordingly.
Beyond dividends, the treasury collects taxes, royalties and other levies. Esther Sri Astuti, executive director of INDEF, the Institute for Development of Economics and Finance, an independent think tank, argues that more investment and a bigger stake would widen all of these revenue streams.
In her view, the extension and the extra shares strengthen the country's bargaining position and its control over the resource.
Two different numbers
The coverage contains two estimates, and they should not be confused. Esther Sri Astuti refers to potential additional investment of around $20 billion over the next 20 years. Airlangga cites up to $40 billion and says other investors would follow Freeport into Indonesia.
The source does not reconcile the two. Until a final contract is published, both remain estimates and statements of intent.
Smelting, jobs and social spending
Downstream processing is a separate thread. Freeport runs a smelting and refining facility in the Gresik Special Economic Zone (KEK) in East Java. The INDEF economist says it strengthens domestic supply chains, lifts export value and cuts imports.
She also says Indigenous Papuans now make up more than 40% of PTFI's workforce, a share that keeps rising. The company invests in education and training so that local staff can move into technical and managerial roles.
Freeport spent Rp 2 trillion on social programmes in 2025. It plans to keep spending about $100 million a year, around Rp 1.7 trillion, on roads, bridges, clinics and schools near its operations, plus corporate social and environmental responsibility programmes known locally as TJSL.
Experts stress that the money is only part of the story. If the investment materialises, it could lift state revenue, processing capacity, local employment and construction in the mining region. All of these effects are described as possible, not as achieved.
What it means for Bali
Papua and East Java are a long way from Bali's villa market, and Bali is not mentioned in the coverage, which deals with mining, processing and state revenue.
The source describes an arrangement in which extending a foreign company's operations is linked to a larger state stake: the INDEF economist says an extra 12% of shares goes to the government, and a 63% holding would lift dividends paid through MIND ID.
All the sums in the coverage remain estimates: up to $40 billion from the minister and about $20 billion over 20 years from INDEF. The final terms will only be clear once the contract extension is formalised.