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PTFI commissions the University of Indonesia’s Institute of Economics and Social Research to conduct an economic impact assessment of PTFI’s operations every two to three years. A study was completed in 2015 and the results are being finalized. The study conducted previously in 2012 measured PTFI’s economic impact on a local, regional, and national level from 2006 to 2011. The study revealed that PTFI contributed to up to 94.7 percent of the gross domestic product (GDP) of the Mimika Regency, 45.4 percent of Papua Province, and 0.8 percent of Indonesia. The 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. PTFI’s presence has spurred rapid economic development in Timika, which has transformed it into an important political and economic center in the region. As a result, Timika has witnessed high population influx from other parts of Papua and greater Indonesia in search of employment opportunities.

As part of its strategy to mitigate the risk of social tensions created by high unemployment in Papua, PTFI is implementing a Micro, Small, and Medium Enterprise (MSME) Development Program which provides coaching and mentoring to potential Papuan entrepreneurs. The program aims to increase PTFI’s local content and to stimulate general economic growth by increasing the market competitiveness of these MSMEs. The MSMEs generated a total revenue of approximately $17.5 million, a 34 percent increase from 2014.

PTFI implements a Highland Agricultural Development (HAD) program to stimulate economic development and support livelihoods in highland villages. One component of HAD is the introduction of coffee as a cash crop in four villages, Aroanop, Tsinga, Hoya, and Opitawak. PTFI has provided coffee seeds and training to farmers, while the government has supplied them with tools. PTFI works with the cooperative to build their capacity in managing the program and to generate sufficient scale of production for export to international markets in the future.

In the lowland area, PTFI 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. Egg production at the farm has increased by 10 percent in 2015 and serves up to 35 percent of the local market. Since 2011, PTFI has introduced cocoa as a cash crop to lowland communities by providing seedlings and training. There are currently 263 farmers cultivating 153 hectares of cocoa. Along with coffee, cocoa presents a real option for local farmers to obtain a sustainable source of income outside of mining activities.

In 2015, the Amungme and Kamoro Community Development Organization (LPMAK) invested $4.8 million in economic development programs which supported local businesses, agriculture, and fisheries. LPMAK supported 773 micro-businesses that were engaged in a range of services, trade, and home industry businesses. These micro-businesses generate income, which leads to job creation. They stimulate local economic growth within villages, and provide families with funds to pay for education and health expenses and to further invest in their businesses.



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