Erick Thohir Delivers Good News: Freeport Will Earn IDR 105 Trillion In Revenue And IDR 40 Trillion In Profit At The End Of 2021

Minister of SOEs, Erick Thohir. (Photo: Doc. Ministry of SOEs)

JAKARTA - Minister of State-Owned Enterprises (BUMN) Erick Thohir said that PT Freeport Indonesia's revenue increased by more than 100 percent after its share ownership was controlled by Indonesia as much as 51 percent. Erick said that Freeport's performance had continued to improve in the past year.

Erick said that in 2020 Freeport will get revenue of IDR 50 trillion. Meanwhile, this year's revenue is projected to reach Rp105 trillion.

"Then, last year's net profit of IDR 10 trillion is planned for IDR 40 trillion this December. Now this of course happens because of the increase in capacity rather than Freeport's own production as well as the increase in cooper prices and continued efficiency," he said at the groundbreaking of the smelter in the Special Economic Zone (KEK). ) Gresik, Gresik Regency, East Java, Tuesday, October 12.

Furthermore, Erick said that in order to increase profits and provide added value, the government carried out the construction of a smelter or refining plant for mining products. So that the mines that have been excavated are not sent abroad in raw form.

The countries that are usually the destination for refining mines are Japan and Spain.

"Indeed, this smelter will invest IDR 42 trillion, whose function is none other than a copper refining facility to produce copper cathodes and also a precious metal refining facility. Then produce gold, silver and of course other precious metals," he said.

According to Erick, the Freeport smelter can produce as much as 35 tons of gold per year with an estimated transaction value of IDR 30 trillion.

Not only providing income benefits, said Erick, the smelter built in the Gresik SEZ is also able to absorb 40,000 workers by prioritizing native East Java workers.

"We can produce an average production of 35 tons rather than gold per year whose transaction value is approximately Rp. 30 trillion," he explained.