PLN Supply Electricity For Gresik Freeport Smelters

Bungah Substation, which supplies electricity to the Gresik Special Economic Zone, East Java (Photo: PLN)

PT PLN (Persero) supplies reliable electricity to support the smooth production of the PT Freeport Indonesia (PTFI) smelter which was inaugurated Monday, September 23 by President Joko Widodo, at the Java Integrated Industrial and Port Estate (JIIPE) Gresik, East Java.

This PTFI smelter is the cathode refining plant with the world's largest single line design and is capable of reaching production capacity of up to 1.7 million tons. In addition to producing copper cathodes, smelters can also produce gold and silver bullion, as well as Platinum Group Metals (PGM).

PLN President Director, Darmawan Prasodjo, who was present at the inauguration ceremony, said that as the backbone of electricity in Indonesia, PLN is fully committed to supporting production operations from PTFI smelters with reliable electricity. This is important to ensure that downstreaming runs optimally in increasing the added value of refined mineral materials in PTFI smelters.

Darmawan explained, in terms of electricity supply, previously PLN had signed an Electricity Sale and Purchase Agreement (PJBTL) with PT Berkah Kawasan Manyar Sejahtera (BKMS) as the manager of the JIIPE Gresik area. Furthermore, BKMS acts as an extension of PLN in flowing electricity to PTFI smelters in the area.

"PLN's electricity supply to the PTFI smelter will be carried out in 4 stages and has now reached a maximum capacity of 170 Mega Volt Ampere (MVA)," Darmawan said in a statement to the media, Wednesday, September 25.

Darmawan detailed, in the first phase of PLN supplying 30 MVA in September 2023, the second phase of PLN again added 30 MVA in February 2024, the third stage of 50 MVA on April 1, 2024 and finally in the fourth stage of 60 MVA.

He also explained that the important key in encouraging economic growth, especially in the domestic industrial sector, is the adequacy and reliability of electricity supply.

"The full operation of this smelter is expected to stimulate the growth of other derivative industries. This will create a multiplier effect for economic growth in East Java," said Darmawan.