Erick Thohir: Freeport Smelters In Gresik Increase Commodity Values Of Copper And Gold

SOE Minister Erick Thohir (Photo: Antara)

JAKARTA - Minister of State-Owned Enterprises (BUMN) Erick Thohir said the smelter belonging to PT Freeport Indonesia (PTFI) which was recently inaugurated by President Joko Widodo (Jokowi) would increase the added value of copper and gold commodities.

As is known, President Jokowi inaugurated the PT Freeport Indonesia (PTFI) smelter in the Gresik Special Economic Zone, East Java. The smelter with the single line design is the largest in the world, with an investment cost of up to IDR 56 trillion.

"I report to the President that this smelter in Gresik increases the value of copper and gold commodities, and can produce selenium products as raw materials for the semiconductor industry," he said, quoted from Instagram @erickthohir, Tuesday, September 24.

Through the construction of this smelter, continued Erick, as well as the existing smelter from Freeport Indonesia will be able to drastically reduce the export of copper concentrate and of course will provide an increase in state revenue.

"Mining downstream not only strengthens Indonesia's position in the global market but also encourages domestic industrial growth in order to create new jobs and create a more integrated industrial ecosystem," he said.

Previously reported, President Jokowi emphasized that the construction of the PT Freeport Indonesia smelter is the government's effort to welcome Indonesia to become a developed industrial country that processes its own natural resources so that it no longer exports raw materials.

"This is an implementation of an idea that we often convey about downstreaming, which is Indonesia's new economic foundation that does not rely on domestic consumption," said Jokowi.

For information, from the IDR 56 trillion investment for the smelter, as a result, 900,000 tons of copper cathode, approximately 50 tons of gold, and 210 tons of silver. With an industry of this size, it will involve many small business MSMEs, and increase the multiplier effect for the surrounding region.