Groundbreaking for PT Freeport Indonesia's Smelter Construction
President Joko Widodo (Jokowi) this morning, Tuesday (12/10/2021) departed for East Java Province, for a working visit.
Jokowi and his entourage took off from the Halim Perdanakusuma Air Force Base in Jakarta at around 08.00 WIB using the Indonesia-1 Presidential Aircraft.
Arriving at Juanda International Airport, Sidoarjo Regency, Jokowi will go directly to the Special Economic Zone
(SEZ) Gresik, Gresik Regency.
President Joko Widodo (Jokowi) today, Tuesday (12/10/2021) held the groundbreaking of the PT Freeport Indonesia copper smelter in the JIIPE Special Economic Zone, Gresik, East Java.
In his remarks, Jokowi emphasized the importance of processing mining products domestically. Thus, the added value can also be enjoyed by the state, not other countries.
He said that so far copper has been mined from Indonesia, but unfortunately, most of the copper concentrate is still being processed abroad, such as in Spain and Japan. Do not let us have mines, concentrates, downstream smelters in other countries, in Spain, Japan, the added value who enjoy them," he said at the "Groundbreaking PT Freeport Indonesia Smelter Development" event at the Gresik Special Economic Zone, East Java, Tuesday (12/10/2021).
Therefore, with the reason for the greatest prosperity of the Indonesian people and this multiplied added value, his party asked PT Freeport Indonesia to build a copper smelter in the Gresik SEZ, East Java.
"This is why the PT Freeport smelter was built domestically, namely in Gresik, East Java," he said. Therefore, the government considers this a strategic policy, related to the copper mining industry after we control 51% of Freeport's shares, and at that time we encourage Freeport to build a domestic smelter. Because we want added value to be here," he explained.
The smelter for processing copper concentrate into copper cathode owned by PT Freeport Indonesia has a capacity of 1.7 million tons of copper concentrate with a product of 600 thousand tons of copper cathode.
The project worth US$ 2.8 billion or around Rp 40 trillion is targeted to be completed in 2023-2024. President Joko Widodo (Jokowi) cannot express his pride after Indonesia was able to build the largest smelter plant in the world.
This was stated by Jokowi while witnessing the groundbreaking of PT Freeport Indonesia's smelter construction in the Gresik Special Economic Zone (KEK), East Java. Jokowi admitted that he could not imagine when this factory was completed.
"Imagine 1.7 million tons. If a small truck is raised, it can usually carry 3-4 tons. So how many trucks will line up here? If three tons per small truck, it means that there are 600 thousand trucks lined up here. very big,"
Jokowi hopes that the presence of the Freeport smelter factory can become another industrial power to enter the Gresik SEZ, especially the copper industry and its derivatives.
"The government will continue to provide full support, and maintain a better investment climate," he said.
Jokowi emphasized that the government will continue to support the ease and certainty of doing business in the Gresik SEZ, including the construction of various supporting facilities.
"Availability of human resources, industrial needs, city and district governments will support the Gresik SEZ to be more advanced and Indonesia to be more attractive as an investment destination," he said.
After that, Jokowi will immediately return to Jakarta via Juanda International Airport, Sidoarjo Regency, using the Indonesia-1 Presidential Aircraft.
Also accompanying Jokowi on the flight to East Java Province were SOE Minister Erick Thohir, Cabinet Secretary Pramono Anung, Head of the Presidential Secretariat Heru Budi Hartono, Presidential Military Secretary Marsda TNI M. Tonny Harjono, and Paspampres Commander Major General TNI Tri Budi Utomo.In line with the IUPK, PTFI has started to build a new smelter called Smelter Manyar. This is PTFI's second smelter after PTFI built the first copper smelter in Indonesia in 1996, which is now known as PT Smelting Gresik. The first smelter was built as a form of PTFI's compliance with the Contract of Work II (PTFI operating license 1991-2018) which requires all holders to carry out domestic processing/refining.
The two PTFI smelter facilities are a tangible form of PTFI's commitment and seriousness in supporting the national downstream program. Going forward, PTFI and the Government of Indonesia will continue to work hand in hand so that the two smelters can provide the maximum benefit to all parties, through various efforts such as maintaining a healthy investment climate and expanding downstream industries that are ready to absorb PTFI's copper processed products.