President Inaugurates Freeport’s Smelter Production Facility in East Java

President Jokowi inspects facilities at PT Freeport Indonesia (PT FI) at Special Economic Zone JIIPE Gresik, East Java, on Monday (23/09) (Photo: Bureau for Press and Media of Presidential Secretariat/Muchlis Jr)

President Joko “Jokowi” Widodo Monday (23/09) inaugurated the smelter production facility of gold and copper mining company PT Freeport Indonesia at the Special Economic Zone JIIPE Gresik in Gresik Regency, East Java Province.

The smelter, built with a substantial investment of Rp56 trillion, represents a major government initiative to boost industrial downstreaming in the country.

In his remarks, the President acknowledged that the negotiations for building the smelter were challenging; yet, after a long journey, the smelter, spanning 100 hectares, is now completed and ready to operate.

The Head of State also highlighted the positive impacts of the smelter on state revenue, which is projected to reach Rp80 trillion – a considerable figure compared to the revenue generated from exporting raw materials alone.

“After 30 months, alhamdulillah, we can officially inaugurate the smelter production today. I have calculated that the state revenue from PT Freeport Indonesia could reach approximately Rp80 trillion, including contributions from dividends, royalties, corporate income tax, employee income tax, regional tax, export duties, and export tax. This is a substantial figure,” the President said.

The President further stated that the smelter is part of Indonesia’s strategy to harness its own natural resources and to reduce raw materials export.

With this facility, he added, PT Freeport Indonesia can process 1.7 million tons of copper concentrate from Papua and the smelter is also expected to significantly impact small and medium enterprise (MSME) sectors in the country.

The President also noted that the smelter would stimulate the growth of the copper derivatives industry around the Gresik area.

“It is not a small amount. I believe that in the future cable factories and others will invest our country, including what Pak Erick Thohir said about selenium – a byproduct of copper smelting – that can be used in semiconductor production,” the President remarked. (Bureau for Press and Media of Presidential Secretariat /DNS) (GA/EP)