ASIATODAY.ID, JAKARTA – The PT Freeport Indonesia (PTFI) smelter in the Java Integrated Industrial Ports Estate (JIIPE) Special Economic Zone (SEZ), Gresik, East Java, officially operates on Thursday, June 27 2024.
The largest copper smelter in the world is the result of the Indonesian Government’s industrial downstream policy to increase added value to the national economy while maintaining national economic resilience.
“We give applause to the extraordinary management. And what was built was an extraordinary, extraordinary factory. So this is very timely, because currently renewable energy is becoming a trend. And the renewable energy trend requires critical minerals. And one of them is copper,” said Coordinating Minister for Economic Affairs Airlangga Hartarto at the Inauguration of the PT Freeport Indonesia Smelter Operation.
The inauguration of the smelter was attended by PTFI President Director Tony Wenas, Minister of Investment/Head of the Investment and Coordinating Board Bahlil Lahadalia, Acting Director General of Minerals and Coal at the Ministry of Energy and Mineral Resources, Bambang Suswantono and Gresik Regent Fandi Akhmad Yani.
The PTFI smelter is the largest single-line copper refining facility in the world with a refining capacity of 1.7 million tons of copper concentrate per year. The project, which occupies 100 hectares of land in the Java Integrated Industrial Ports Estate (JIIPE) SEZ, Gresik, East Java, has a cumulative investment value of US$3.7 billion. This investment will not only provide benefits for domestic construction companies, but will also create multiplier effects for the people of Gresik Regency.
Together with the smelter operated by PT Smelting, the two will refine 3 million tons of copper concentrate per year with a production of around 600,000 tons of copper cathode, 50 tons of gold and 200 tons of silver per year.
With the operation of this smelter, all copper concentrate produced by PTFI can be processed and refined domestically, as can the anode sludge from PT Smelting.
“And this is the first integration of mining to the final product. And with this integration, gold production of 50 tons will pay royalties. Because this is integrated from the mine to the downstream. Likewise, you also pay royalties for silver. “So of course the government gets a lot of income,” said Airlangga.
It is hoped that PTFI’s presence in the Gresik SEZ can be an attraction in forming an area with an ecosystem that supports downstreaming, especially EVs.
As of March 2024, the Gresik SEZ has recorded an investment value of IDR 75.2 trillion and absorbed more than 35,000 workers.
“Of course in the future Indonesia will be able to increase its exports. If our exports are strong, then our rupiah can be stable. For example, from nickel and from palm oil our exports are US$55 billion. Oil imports are US$40 billion. “So actually natural hedging occurs,” concluded Airlangga. (AT Network)
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