Inaugurating The Gresik Smelter Construction, Jokowi Hopes It Will Attract Investors To East Java

President Jokowi in Gresik

GRESIK - President Joko Widodo laid the groundwork for the construction of a smelter or refining plant and mineral mine processing for PT Freeport Indonesia at the Java Integrated Industrial and Port Estate (JIIPE) in Gresik Regency, East Java.

The smelter, whose construction is estimated to cost USD 3 billion or Rp. 42 trillion, can process as much as 1.7 million tons of copper concentrate per year. Meanwhile, the capacity of the anode sludge refining plant to turn it into gold reaches 6,000 tons per year.

"The copper concentrate processing capacity reaches 1.7 million tons per year, and this is a very large amount. Hopefully the construction of this smelter can attract other industries to enter East Java," said Jokowi, Tuesday, October 12.

On that occasion, the Governor of East Java, Khofifah Indar Parawansa, said that the presence of the PT Freeport smelter in the Gresik SEZ was one of the best gifts ahead of the 76th anniversary of the East Java Provincial Government. Khofifah is optimistic that the smelter will provide multiplier effects, or a large positive impact on economic growth.

"Of course there will also be openings for employment, as well as the welfare of the people of East Java," he said.

According to Law No. 3 of 2020 concerning Mineral and Coal, continued Khofifah, mining companies are required to build smelters, or processing plants with the aim of not supplying raw mining products to the market. But it is a finished product to provide added value for the region and the state in the implementation of mining, processing, refining, and utilization of minerals and coal.

Not only profitable for the domestic mining industry, Khofifah said the presence of this smelter will also reduce the unemployment rate in East Java. It is estimated to be able to absorb 40,000 workers, as well as the emergence of related supporting industries.

"The presence of this smelter factory will significantly increase the Gross Regional Domestic Product (GDP).

Khofifah said that the PT Freeport Indonesia smelter, which stands on an area of 103 hectares, is targeted to be operational in 2023. Gresik was chosen as the location for the smelter, because in the area there is a cement factory that can utilize the results of processing sulfuric acid, silver and gypsum.

"Thank you, Mr. President, for conducting the groundbreaking for the construction of the PT Freeport Indonesia smelter. This is a very valuable East Java birthday gift. God willing, this will bring a lot of goodness to East Java, so that it can quickly rise up, grow quickly after being hit by the COVID-19 pandemic," he said.