Economic Performance

Bumi Suksesindo employees explained the latest developments in the exploration of the Tujuh Bukit Copper Project during a visit in November 2021. [Photo: Anggung Setiawan/BSI]

Merdeka is a public company listed on the Indonesia Stock Exchange since 2015; therefor transparency and accuracy of the company’s economic performance is an obligation.

Merdeka is committed to support state and local government revenues in the mining operation area through tax and non-tax contributions, employee salaries and benefits, job creation for residents of the districts and provinces where we operate, and business opportunities for business sectors. local supporters, as well as through various community empowerment programs.

Merdeka reports financial performance regularly to the government and other stakeholders through our Financial Reports and Annual Reports.

Total Economic Value Generated

Merdeka’s total revenue in 2021 was US$381 million, an increase of 19.4% from 2020. This surge in revenue was contributed by increased production at the Wetar Copper Mine and the Tujuh Bukit Gold Mine which resumed full operation after the heap leach pad was repaired. In addition, there will be an increase in the selling price of copper by 54.2% in 2021.

Economic Value Distributed

Despite being hit by difficult economic conditions due to the global COVID-19 pandemic, Merdeka has maintained its commitment to social responsibility. The total economic value distributed by Merdeka in 2021, amounting to US$373.8, was the highest compared to previous years.

Payment to Government

Merdeka’s financial contributions are in the form of tax payments and Non-Tax State Revenue (PNBP). In 2021, Merdeka paid taxes of US$49.9 million (up 103% from the previous year) and PNBP in the form of royalties of US$13.5 million (down 15% from 2020).

Community Investment

In 2021, Merdeka invested US$3.6 million to improve the quality of life and well-being of local communities. Mainly in the health sector, infrastructure, and improvement of the local economy, including support for the growth of new economic sectors in the community related to supply chains to companies and income diversification.

Employee Wage and Benefits

Merdeka provides salaries and benefits that meet, even exceed, the minimum regulatory requirements. In 2021, there will be a significant increase in the number of Merdeka employees, including the value of rewards and performance. The salaries and employee benefits that Merdeka will pay in 2021 are US$55.8 million, a 24% increase compared to 2020.

Priority of Local Workers and Suppliers

As of December 31, 2021, the total workforce recruitment from Ring 1 (sub-district area) and Ring 2 (district and province area) in our two operations ( Tujuh Bukit Gold Mine and Wetar Copper Mine) and one of our projects (Pani Gold Project) ranged from between 66.0% to 71.2%, higher than 2020 (60%–70%) and 2019 (52.7%–68.9%).