In Indonesia, PTFI has committed to provide one percent of its annual revenue for the development of indigenous Papuan communities through the Freeport Partnership Fund for Community Development. The Amungme and Kamoro Community Development Foundation (LPMAK) is the Papuan community organization that oversees disbursement of these program funds. LPMAK is governed by a Board of Commissioners and a Board of Directors, both comprised of representatives from local Amungme and Kamoro communities, local government, Papuan regional leaders, church leaders, and PTFI. PTFI’s contribution to the Partnership Fund was $55 million in 2018 and over $790 million since its inception in 1996. In 2018, PTFI and LPMAK signed an agreement extending the funding arrangement between the two organizations through June 2019. PTFI also initiated a process to convert the structure of LPMAK into an Indonesian foundation, a process expected to be completed by the end of 2019. During the transition, the Partnership Fund will continue to be capitalized with no interruption in implementation of approved health, education and economic development projects and programs. Once the transition is complete, a new Board structure and composition will strengthen the long-term effectiveness of the PTFI’s social investments with a goal that the new foundation will achieve financial self-sufficiency before mine closure.

In 2018, PTFI’s investment in communities was $103 million, which included contributions to Trust Funds (including the Partnership Fund and the Amungme and Kamoro Trust Funds), community safety, health and environment programs, community infrastructure programs, community education and training programs, and community livelihoods and economic development programs. PTFI’s social investments are a commitment to provide sufficient financial resources to proactively manage the impacts of the operation and to work with local partners to support development opportunities beneficial to stakeholders in the region.

PTFI collaborates with a wide range of partners and invests in community infrastructure projects that support the evolving economic, health and education needs of the Mimika region. During 2018, PTFI invested over $4 million in community infrastructure. PTFI’s infrastructure development expertise, combined with partner networks and provinces. 

Since the inception of the Tiga Desa (Three Villages) Program in 2000, PTFI has invested approximately $93 million in community infrastructure projects in the highland communities of Aroanop, Wa’a Banti and Tsinga, which surround the PTFI project area. Nearly $4 million was invested in 2018. Through a community consultation process initiated in 2000 and later formalized in a MoU, PTFI provides funding for equipment, materials, transportation and labor to build an infrastructure network that includes over 300 houses, 400 septic tanks, three schools, ten teacher houses, three clinics, three markets, 13 churches, 20 bridges, 225-kilowatt generators and two airstrips. The Banti micro-hydropower generation project has provided electricity to approximately 500 households in the highland community of Wa’a Banti. 

In 2017, PTFI completed phase one of its partnership with the local Mimika government that improved distribution of clean water to Timika with the addition of two water treatment plants, two reservoirs and support facilities. Phase two of the project continued in 2018, with nearly $1.5 million spent on the construction of a water intake facility by PTFI and the installation of pipelines by the local government to distribute the clean water to communities in Timika and surrounding areas.

Through the Partnership Fund, PTFI has committed to provide one percent of its annual revenue for the development of indigenous Papuan communities. The Amungme and Kamoro Community Development Foundation (LPMAK) is the Papuan community organization that oversees disbursement of program funds. LPMAK is governed by a Board of Commissioners and a Board of Directors, both comprised of representatives from local Amungme and Kamoro communities, the local government and PTFI as well as Papuan regional leaders and church leaders. PTFI’s contribution to the Partnership Fund was $55 million in 2018 and over $790 million since its inception in 1996. In 2018, PTFI and LPMAK signed an agreement extending the funding arrangement between the two organizations through June 2019. PTFI also initiated a process to convert the structure of LPMAK into an Indonesian foundation, a process expected to be completed by the end of 2019. During the transition, the Partnership Fund will continue to be capitalized with no interruption in implementation of approved health, education and economic development projects and programs. Once the transition is complete, a new board structure and composition is expected to strengthen the long-term effectiveness of PTFI’s social investments with a goal that the new foundation will achieve financial self-sufficiency before mine closure.