Freeport Smelter Officially Operates, Airlangga: Gresik's Economic Growth Will Be Higher

Coordinating Minister for Economic Affairs (Menko) Airlangga Hartarto. (Photo: Doc. Coordinating Ministry for the Economy)

Coordinating Minister for Economic Affairs Airlangga Hartarto believes that economic growth in Gresik, East Java, will be higher in line with the operation of the copper smelter owned by PT Freeport Indonesia.

In fact, Airlangga believes that the presence of the smelter will make Gresik's economy outperform other areas in the East Java region.

"I see that when production is running next year, economic growth in Gresik, I am sure it will be higher than various other regions in East Java," he said at the inauguration of the Gresik Smelter operation, quoted from YouTube Freeport Indonesia, Thursday, June 27.

Airlangga also said that no one was able to build a smelter as big as copper like PT Freeport Indonesia.

The presence of the smelter, he continued, is very timely considering the trend of renewable energy which currently needs critical minerals.

This is the greatest, because we will see in the next 3 to 4 years. No one can be able to build a smelter like this on 100 hectares of land anywhere. Even if they think it's still 4 years old, the next 5 years can only be produced. So this is very timely," he explained.

Airlangga said that the Freeport Indonesia smelter, which is located in Gresik, has a production capacity of up to 1.7 million tons of mine concentrate per year.

Meanwhile, he continued, the output from the smelter from this smelter is around 600,000 to 700,000 tons of copper cathodes that can produce by-products from anode mud, namely 50 to 60 tons of gold, and 220 tons of silver per year.

Of course, multipliers to the industrial sector here are efficient industries in one location. So with Freeport's presence here, copper, silver, gold-based industries will definitely be pushed in this area. This is extraordinary," he said.

Previously, the government inaugurated the second copper smelter belonging to PT Freeport Indonesia (PTFI) at the Java Integrated Industrial and Ports Estate (JIIPE), Gresik, East Java, today.

The smelter can produce 60 tons and 220 tons of copper per year.

PTFI President Director Tony Wenas said the newly inaugurated smelter was successfully completed within five years, where for 1.5 years it was used for land maturation.

"Alhamdulillah, we can inaugurate the PTFI operation which is quite challenging to complete it," he said at the inauguration of the Gresik Smelter operation, quoted from YouTube Freeport Indonesia, Thursday, June 27.

"We can achieve it, we can adjust it according to schedule and not thanks to the support of all parties," he continued.