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Mining giant Freeport top Indon corporate tax payer in 1995

Source
Reuters - February 4, 1997

Jakarta – Mining giant PT Freeport Indonesia was the top corporate tax payer in Indonesia in 1995 and Salim Group founder Liem Sioe Liong the top individual tax payer, a senior tax official said at the weekend.

Two of President Suharto's sons were listed the 10th and 13th highest taxpayers in figures released by the director-general of taxation, Fuad Bawazier, on Sunday.

Freeport, 81.28 per cent owned by the US Freeport McMoRan Copper and Gold Inc, runs the giant Grasberg mine in remote Irian Jaya province, one of the world's largest copper and gold producers.

It jumped to first place from number 53 in 1994.

"Freeport is the largest corporate tax payer in Indonesia in 1995," Mr Bawazier said, adding this was because of a dramatic increase in profits.

He did not reveal how much Mr Liem, a close associate of Mr Suharto, or other tax payers handed over to the state. The Salim Group is a diversified operation with interests ranging from plantations and banks to cement and property.

State-controlled Telecommunication company PT Telekomunikasi Indonesia (Telkom) and PT Indonesian Satellite Corporation (Indosat) came second and third among corporate tax payers in 1995.

Eka Tjipta Widjaja, an ethnic Chinese born in China's Fujian province and head of the diversified Sinar Mas Group, was listed second among individual tax payers, up from seventh in 1994.

Mr Suharto's sons Bambang Trihatmodjo and Hutomo Mandala "Tommy" Putra were listed 10th and 13th respectively. Bambang had ranked fifth in 1994. Bambang is head of PT Bimantara Citra Group and Hutomo is the head of PT Humpuss.

Among other corporate taxpayers, PT Hanjaya Mandala Sampoerna, PT Gudang Garam, PT Indocement Tunggal Prakarsa and Bank Negara Indonesia, were ranked fourth, fifth, sixth and seventh respectively.

Mr Bawazier said the top 200 companies contributed 36.7 per cent, or 4.8 trillion rupiah (S$2.88 billion), of total corporate income tax.

He said the top 200 individual list accounted for 2.7 per cent, or 194.89 billion rupiah of total individual tax revenue.

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