Jokowi Inaugurates Freeport Smelter In Gresik

President Joko Widodo (Photo: Doc. ANTARA)

JAKARTA - President Joko Widodo inaugurated the production of a smelter owned by PT Freeport located in Gresik, East Java Province.

"By saying bismillahirrahmanirrahim, this afternoon I inaugurate the production of the PT Freeport Indonesia smelter in Gresik Regency, East Java Province," said Joko Widodo, Monday, September 23.

In his remarks, Jokowi said, while serving as president for 10 years, the most difficult job faced was to invite mining companies to build a purification industry.

He then recalled his meeting with Freeport Chairman & CEO McMoran Inc Richard C Adkerson to negotiate the construction of a smelter in Gresik.

"That is still very tough in negotiations because I know this investment is not small. Rp56 trillion is not small money. Very big money, so I realized the company had to calculate, what profit to build a smelter is this big," he continued.

After tough negotiations, construction began in 2018 which began with land preparation.

The construction process lasted for 30 months since the groundbreaking.

While traveling around the smelter area, Jokowi said the land used for the construction of this smelter was 104 hectares.

"The land used is more than 104 hectares. It is very large. The investment was IDR 56 trillion," he added.

Jokowi said, with the construction of this meter, the state will pocket Rp80 trillion per year from dividends, royalties, corporate income tax, employee income tax, taxes for regions and outgoing duties,

"The construction of the PTFI smelter is our effort to welcome Indonesia to become a developed industrial country that processes its own natural resources and does not export raw materials or raw materials," said Jokowi.